Obsolete Grant and Contract Regulations
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Issuing agencies
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 These grant and contract regulations were superseded by the Office of Management and Budget's (OMB's) Guidance for Grants and Agreements, codified in the Code of Federal Regulations, which the Department of Labor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]
[[Page 28002]]
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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regulations were superseded by the Office of Management and Budget's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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</html>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.