Rule2025-11847

Obsolete Grant and Contract Regulations

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
July 1, 2025
Effective
September 2, 2025

Issuing agencies

Labor Department

Abstract

This DFR removes obsolete grant and contract regulations in the Department of Labor's regulations. These grant and contract regulations were superseded by the Office of Management and Budget's (OMB's) Guidance for Grants and Agreements, codified in the Code of Federal Regulations, which the Department of Labor adopted and gave regulatory effect to in 2014.

Full Text

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<title>Federal Register, Volume 90 Issue 124 (Tuesday, July 1, 2025)</title>
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[Federal Register Volume 90, Number 124 (Tuesday, July 1, 2025)]
[Rules and Regulations]
[Pages 28002-28004]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-11847]



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DEPARTMENT OF LABOR

Office of the Assistant Secretary for Administration and Management

29 CFR Parts 95, 96, 97, and 99

[Docket No. ETA-2025-0002]
RIN 1291-AA48


Obsolete Grant and Contract Regulations

AGENCY: Office of the Assistant Secretary for Administration and 
Management, Labor.

ACTION: Direct final rule (DFR); request for comments.

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SUMMARY: This DFR removes obsolete grant and contract regulations in 
the Department of Labor's regulations. These grant and contract 
regulations were superseded by the Office of Management and Budget's 
(OMB's) Guidance for Grants and Agreements, codified in the Code of 
Federal Regulations, which the Department of Labor adopted and gave 
regulatory effect to in 2014.

DATES: The direct final rule is effective September 2, 2025, unless 
significant adverse comments are received by July 31, 2025. Significant 
adverse comments are ones which oppose the rule and raise, alone or in 
combination, a serious enough issue related to each of the independent 
grounds for the rule that a substantive response is required. If 
significant adverse comments are received, notification will be 
published in the Federal Register before the effective date either 
withdrawing the rule or issuing a new final rule which responds to 
significant adverse comments.

ADDRESSES: You may send comments, identified by Docket No. ETA-2025-
0002 and Regulatory Identification Number (RIN) 1291-AA48, by the 
following method:
    <bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 
Search for the above-referenced RIN, open the interim final rule, and 
follow the on-screen instructions for submitting comments.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking or ``RIN 1291-AA48.''
    Please be advised that the Department will post comments received 
that relate to this interim final rule to <a href="https://www.regulations.gov">https://www.regulations.gov</a>, 
including any personal information provided. The <a href="https://www.regulations.gov">https://www.regulations.gov</a> website is the Federal e-Rulemaking Portal and all 
comments posted there are available and accessible to the public. 
Please do not submit comments containing trade secrets, confidential or 
proprietary commercial or financial information, personal health 
information, sensitive personally identifiable information (for 
example, social security numbers, driver's license or State 
identification numbers, passport numbers, or financial account 
numbers), or other information that you do not want to be made 
available to the public. Should the agency become aware of such 
information, the agency reserves the right to redact or refrain from 
posting sensitive information, libelous, or otherwise inappropriate 
comments, including those that contain obscene, indecent, or profane 
language; that contain threats or defamatory statements; or that 
contain hate speech. Please note that depending on how information is 
submitted, the agency may not be able to redact the information, and 
instead reserves the right to refrain from posting the information or 
comment in such situations.
    Docket: For access to the docket to read background documents or 
comments received, go to <a href="https://www.regulations.gov">https://www.regulations.gov</a> (search using RIN 
1291-AA48 or Docket No. ETA-2025-0002). If you need assistance to 
review the comments, contact the Office of Policy Development and 
Research at 202-693-3700 (this is not a toll-free number).

FOR FURTHER INFORMATION CONTACT: Thomas Kodiak, Administrator, Office 
of Grants Management, Employment and Training Administration, U.S. 
Department of Labor, 200 Constitution Avenue NW, Room S-4519, 
Washington, DC 20210, Telephone: (202) 693-6617 (voice) (this is not a 
toll-free number). For persons with a hearing or speech disability who 
need assistance to use the telephone system, please dial 711 to access 
telecommunications relay services.

SUPPLEMENTARY INFORMATION: 

I. Discussion

    The Department of Labor (``DOL'' or ``Department'') is rescinding 
obsolete regulations governing grants and agreements with universities, 
hospital, other non-profits, commercial organizations, foreign 
governments, and international organizations (29 CFR part 95); audit 
requirements for grants, contracts, and other agreements (29 CFR part 
96); uniform administrative requirements for grants and cooperative 
agreements to State and local governments (29 CFR part 97) and audit 
requirements for States, local governments, and non-profit 
organizations (29 CFR part 99). DOL previously promulgated these 
regulations to adopt standards in Office of Management and Budget (OMB) 
Circulars A-110, A-102, and A-133. Specifically, A-110 was adopted by 
29 CFR part 95 in 1994 (59 FR 38270); Circular A-102 was adopted by 29 
CFR part 97 in 1988 (53 FR 8034); and Circular A-133 was adopted by 29 
CFR parts 96 and 99 in 1999 (64 FR 14539). In 2013, OMB published its 
Guidance for Grants and Agreements (78 FR 78590), which was codified at 
2 CFR part 200, also known as the ``Uniform Guidance.'' That Guidance 
superseded Circulars A-102, A-110, and A-133, and the regulations at 29 
CFR parts 95-97 and 99 were superseded when the Department adopted and 
gave regulatory effect to the Uniform Guidance on December 19, 2014 (79 
FR 76081). See 2 CFR 2900.4.
    Therefore, these regulations are at best redundant and at worst 
confusing to regulated entities that might wonder which set of 
regulations applies. The Department is undertaking this ministerial 
action to remove the regulations from the CFR.

II. Procedural Issues and Regulatory Review

A. Review Under Executive Orders 12866

    Executive Order (E.O.) 12866, ``Regulatory Planning and Review,'' 
58 FR 51735 (Oct. 4, 1993), requires agencies, to the extent permitted 
by law, to (1) propose or adopt a regulation only upon a reasoned 
determination that its benefits justify its costs (recognizing that 
some benefits and costs are difficult to quantify); (2) tailor 
regulations to impose the least burden on society, consistent with 
obtaining regulatory objectives, taking into account, among other 
things, and to the extent practicable, the costs of cumulative 
regulations; (3) select, in choosing among alternative regulatory 
approaches, those approaches that maximize net benefits; (4) to the 
extent feasible, specify performance objectives, rather than specifying 
the behavior or manner of compliance that regulated entities must 
adopt; and (5) identify and assess available alternatives to direct 
regulation, including providing economic incentives to encourage the 
desired behavior, such as user fees or marketable permits, or providing 
information upon which choices can be made by the public.
    Section 6(a) of E.O. 12866 also requires agencies to submit 
``significant regulatory actions'' to OIRA for review.

[[Page 28003]]

OIRA has determined that this direct final rule does not constitute a 
``significant regulatory action'' under section 3(f) of E.O. 12866. 
Accordingly, this direct final rule was not submitted to OIRA for 
review under E.O. 12866.

B. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of a final regulatory flexibility analysis (FRFA) for any 
rule that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. This rule 
was not required to be proposed for public comment, so no FRFA was 
warranted.

C. Review Under the Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) 
requires minimizing the paperwork burden on affected entities. This 
rescission imposes no new information or record-keeping requirements. 
Accordingly, OMB clearance is not required under the Paperwork 
Reduction Act.

D. Review Under Executive Order 13132

    E.O. 13132, ``Federalism,'' 64 FR 43255 (August 10, 1999), imposes 
certain requirements on Federal agencies formulating and implementing 
policies or regulations that preempt State law or that have federalism 
implications. The E.O. 13132 requires agencies to examine the 
constitutional and statutory authority supporting any action that would 
limit the policymaking discretion of the States and to carefully assess 
the necessity for such actions. The E.O. 13132 also requires agencies 
to have an accountable process to ensure meaningful and timely input by 
State and local officials in the development of regulatory policies 
that have Federalism implications.
    DOL has examined this rescission and has determined that it would 
not have a substantial direct effect on the States, on the relationship 
between the Federal government and the States, or on the distribution 
of power and responsibilities among the various levels of government.

E. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of E.O. 12988, ``Civil 
Justice Reform,'' imposes on Federal agencies the general duty to 
adhere to the following requirements: (1) eliminate drafting errors and 
ambiguity, (2) write regulations to minimize litigation, (3) provide a 
clear legal standard for affected conduct rather than a general 
standard, and (4) promote simplification and burden reduction. 61 FR 
4729 (Feb. 7, 1996). Regarding the review required by section 3(a), 
section 3(b) of E.O. 12988 specifically requires that Executive 
agencies make every reasonable effort to ensure that the regulation: 
(1) clearly specifies the preemptive effect, if any, (2) clearly 
specifies any effect on existing Federal law or regulation, (3) 
provides a clear legal standard for affected conduct while promoting 
simplification and burden reduction, (4) specifies the retroactive 
effect, if any, (5) adequately defines key terms, and (6) addresses 
other important issues affecting clarity and general draftsmanship 
under any guidelines issued by the Attorney General.
    Section 3(c) of E.O. 12988 requires Executive agencies to review 
regulations in light of applicable standards in section 3(a) and 
section 3(b) to determine whether they are met or it is unreasonable to 
meet one or more of them. DOL has completed the required review and 
determined that, to the extent permitted by law, this rescission meets 
the relevant standards of E.O. 12988.

F. Review Under the Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires each Federal agency to assess the effects of Federal 
regulatory actions on State, local, and Tribal governments and the 
private sector. Public Law 104-4, sec. 201 (codified at 2 U.S.C. 1531). 
For a regulatory action likely to result in a rule that may cause the 
expenditure by State, local, and Tribal governments, in the aggregate, 
or by the private sector of $100 million or more in any one year 
(adjusted annually for inflation), section 202 of UMRA requires a 
Federal agency to publish a written statement that estimates the 
resulting costs, benefits, and other effects on the national economy. 2 
U.S.C. 1532(a), (b)). The UMRA also requires a Federal agency to 
develop an effective process to permit timely input by elected officers 
of State, local, and Tribal governments on a ``significant 
intergovernmental mandate,'' and requires an agency plan for giving 
notice and opportunity for timely input to potentially affected small 
governments before establishing any requirements that might 
significantly or uniquely affect them.
    DOL examined this rescission according to UMRA and determined that 
the rescission does not contain a Federal intergovernmental mandate, 
nor is it expected to require expenditures of $100 million or more in 
any one year by State, local, and Tribal governments, in the aggregate, 
or by the private sector. As a result, the analytical requirements of 
UMRA do not apply.

G. Review Under the Treasury and General Government Appropriations Act, 
1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any rule that may affect family well-being. 
This rescission would not have any impact on the autonomy or integrity 
of the family as an institution. Accordingly, DOL has concluded that it 
is not necessary to prepare a Family Policymaking Assessment.

H. Review Under Executive Order 12630

    Pursuant to E.O. 12630, ``Governmental Actions and Interference 
with Constitutionally Protected Property Rights,'' 53 FR 8859 (March 
18, 1988), DOL has determined that this rescission would not result in 
any takings that might require compensation under the Fifth Amendment 
to the U.S. Constitution.

I. Review Under the Treasury and General Government Appropriations Act, 
2001

    Section 515 of the Treasury and General Government Appropriations 
Act, 2001 (44 U.S.C. 3516, note) provides for Federal agencies to 
review most disseminations of information to the public under 
information quality guidelines established by each agency pursuant to 
general guidelines issued by OMB. OMB's guidelines were published at 67 
FR 8452 (Feb. 22, 2002). DOL has reviewed this rescission under the OMB 
guidelines and has concluded that it is consistent with applicable 
policies in those guidelines.

J. Review Under Additional Executive Orders and Presidential Memoranda

    DOL has examined this rescission and has determined that it is 
consistent with the policies and directives outlined in E.O. 14154, 
``Unleashing American Energy,'' E.O. 14192, ``Unleashing Prosperity 
Through Deregulation,'' and Presidential Memorandum, ``Delivering 
Emergency Price Relief for American Families and Defeating the Cost-of-
Living Crisis.'' This rescission is expected to be an E.O. 14192 
deregulatory action.

[[Page 28004]]

K. Congressional Notification

    As required by 5 U.S.C. 801, DOL will report to Congress on the 
promulgation of this rule before its effective date. The report will 
state that it has been determined that the rule is not a ``major rule'' 
as defined by 5 U.S.C. 804(2).

List of Subjects

29 CFR Part 95

    Accounting, Colleges and universities, Grant programs, Hospitals, 
Nonprofit organizations, Reporting and record-keeping requirements.

29 CFR Part 96

    Accounting, Administrative practice and procedure, Colleges and 
universities, Government contracts, Grant programs, Hospitals, Indians, 
Intergovernmental relations, Loan programs, Nonprofit organizations, 
Reporting and record-keeping requirements.

29 CFR Part 97

    Accounting, Grant programs, Indians, Intergovernmental relations.

29 CFR Part 99

    Accounting, Administrative practice and procedure, Grant programs, 
Hospitals, Indians, Intergovernmental relations, Loan programs, 
Nonprofit organizations, Reporting and record-keeping requirements.

29 CFR Parts 95, 96, 97 and 99 [Removed and Reserved]

0
For the reasons set forth in the preamble, under the authority of 5 
U.S.C. 301, the Department removes and reserves 29 CFR parts 95, 96, 97 
and 99.

Dean Heyl,
Assistant Secretary for Administration and Management, Labor.
[FR Doc. 2025-11847 Filed 6-30-25; 8:45 am]
BILLING CODE 4510-04-P


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Indexed from Federal Register on July 1, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.