[Senate Report 118-126]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 271
118th Congress    }                                      {      Report
                                 SENATE
 1st Session      }                                      {     118-126
_______________________________________________________________________

                                     



                      STREAMLINING FEDERAL GRANTS 
                              ACT OF 2023

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 2286

              TO IMPROVE THE EFFECTIVENESS AND PERFORMANCE
                OF CERTAIN FEDERAL FINANCIAL ASSISTANCE
                    PROGRAMS, AND FOR OTHER PURPOSES






[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]







               December 11, 2023.--Ordered to be printed   
               
                             _________
                              
                 U.S. GOVERNMENT PUBLISHING OFFICE
                 
49-010                   WASHINGTON : 2024
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           RAND PAUL, Kentucky
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              JAMES LANKFORD, Oklahoma
JACKY ROSEN, Nevada                  MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
RICHARD BLUMENTHAL, Connecticut      JOSH HAWLEY, Missouri
LAPHONZA R. BUTLER, California       ROGER MARSHALL, Kansas

                   David M. Weinberg, Staff Director
            Lena C. Chang, Director of Governmental Affairs
                  James F. Hiebert, Research Assistant
           William E. Henderson III, Minority Staff Director
              Christina N. Salazar, Minority Chief Counsel
                  Andrew J. Hopkins, Minority Counsel
                     Laura W. Kilbride, Chief Clerk 















                                                      Calendar No. 271
118th Congress    }                                      {      Report
                                 SENATE
 1st Session      }                                      {     118-126

======================================================================



 
                STREAMLINING FEDERAL GRANTS ACT OF 2023

                                _______
                                

               December 11, 2023.--Ordered to be printed

                                _______
                                

 Mr. Peters, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 2286]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 2286) to improve 
the effectiveness and performance of certain Federal financial 
assistance programs, and for other purposes, reports favorably 
thereon with an amendment, in the nature of a substitute, and 
recommends that the bill, as amended, do pass.

                                CONTENTS

                                                                    Page
  I. Purpose and Summary.............................................. 1
 II. Background and Need for the Legislation.......................... 2
III. Legislative History.............................................. 3
 IV. Section-by-Section Analysis of the Bill, as Reported............. 5
  V. Evaluation of Regulatory Impact.................................. 7
 VI. Congressional Budget Office Cost Estimate........................ 7
VII. Changes in Existing Law Made by the Bill, as Reported............ 8

                         I. PURPOSE AND SUMMARY

    S. 2286, the Streamlining Federal Grants Act of 2023, seeks 
to simplify, streamline, and standardize federal grant 
administration. The bill requires that each grantmaking federal 
agency identify a senior agency official responsible for grant 
policy and management. The bill also requires the Director of 
the Office of Management and Budget (OMB) to establish a Grants 
Council, comprised of senior agency officials for grants, along 
with other relevant officials. The Council is tasked with 
streamlining and coordinating federal processes related to 
grant application, administration, and reporting of grants and 
cooperative agreements. The Director of OMB and the Grants 
Council is directed to issue guidance for grantmaking agencies 
to use in developing plans to improve grant administration. The 
bill also requires the Director of OMB and the Secretary of 
Health and Human Services (HHS) to study and improve 
Grants.gov, the federal government's website for searching and 
applying for federal grants. Finally, the bill directs the 
Government Accountability Office (GAO) to conduct two studies 
to: (1) analyze barriers to accessing federal grants; and (2) 
evaluate agency implementation of the bill.

              II. BACKGROUND AND THE NEED FOR LEGISLATION

    Grants and cooperative agreements are an accelerating 
component of federal expenditures. In FY 2022, the federal 
government spent $1.13 trillion dollars on grants, a larger 
share of the federal budget than acquisitions.\1\ Recent 
legislation such as the American Rescue Plan Act, the 
Infrastructure Investment and Jobs Act, the CHIPS and Science 
Act, and the Inflation Reduction Act significantly increased 
the amount of grant funding flowing to local communities and 
organizations to advance key climate, infrastructure, and 
competitiveness goals.\2\
---------------------------------------------------------------------------
    \1\Office of Management and Budget, Analytical Perspectives: Budget 
of the U.S. Government, Fiscal Year 2024 (Mar. 13, 2023).
    \2\American Rescue Plan Act of 2021, Pub. L. 117-2; Chips and 
Science Act, Pub. L. 117-167; Infrastructure Investment and Jobs Act, 
Pub. L. 117-58; Inflation Reduction Act of 2022, Pub. L. 117-169.
---------------------------------------------------------------------------
    Despite the significant impact of and money spent on 
federal grant funding, federal grant administration is 
fragmented, duplicative, and uncoordinated across agencies and 
programs. Currently, there are over 1,900 different federal 
grant programs administered by 51 agencies involving more than 
131,000 award recipients.\3\ Programs often use different 
funding announcement formats, application forms, and software 
systems for grant application and management. This 
fragmentation increases the burden for communities and 
organizations applying and managing federal grants, 
particularly for groups that have not previously applied for or 
received federal grants.\4\
---------------------------------------------------------------------------
    \3\Grants Quality Service Management Office, DC AGA Spring Training 
(Mar. 29, 2023).
    \4\Ellory Monks and Shalini Vajjhala, Transformative Infrastructure 
Funding is Here. The Application Process for Getting it Still Needs 
Work, Brookings Institution (Jul. 11, 2022); Billions for Climate 
Protection Fuel New Debate: Who Deserves It Most, New York Times (Dec. 
3, 2021) (www.nytimes.com/2021/12/03/climate/climate-change-
infrastructure-bill.html).
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    In the past, the Committee has sought to coordinate and 
streamline federal grant administration. The Federal Financial 
Assistance Management Improvement Act of 1999 required agencies 
to coordinate grant reforms by developing streamlining plans, 
participating in a grants coordinating council, and 
standardizing certain grant application forms.\5\ The 
authorities and requirements set forth in the Act expired in 
2007. Congress attempted to reauthorize the law but was 
unsuccessful.\6\
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    \5\Federal Financial Assistance Management Improvement Act of 1999, 
Pub. L. no. 107-107 (Nov. 20, 1999).
    \6\S. 303 amended in the House, as recorded in Federal Financial 
Assistance Management Improvement Act of 2009, Congressional Record, 
H14835 (Dec. 14, 2009); last action reported in Messages from the 
House, Congressional Record, S13249 (Dec. 15, 2009).
---------------------------------------------------------------------------
    Despite the expiration of the authorities in the Act, the 
Administration continued certain limited efforts. For example, 
OMB continued to convene a council, the Council on Financial 
Assistance Reform, before fully disbanding the effort in 
2017.\7\ In 2021, recognizing the need for greater coordination 
to improve efficiency, effectiveness, and equity in grantmaking 
processes while reducing administrative burdens for awardees, 
OMB issued a Management Agenda calling for the creation of a 
new community for grants policy leaders and established a 
Council on Federal Financial Assistance.\8\
---------------------------------------------------------------------------
    \7\Office of Management and Budget, Reducing Burden for Federal 
Agencies by Rescinding and Modifying OMB Memoranda (M-17-26) (June 15, 
2017).
    \8\Office of Management and Budget, Biden-Harris Management Agenda 
Vision (Nov. 18, 2021); Office of Management and Budget, Establishment 
of the Council on Federal Financial Assistance (M-23-19) (Aug. 9, 
2023).
---------------------------------------------------------------------------
    Alongside executive branch efforts to improve grants policy 
and practices, the Committee worked to enact legislation that 
would do the following: prevent recipients of federal awards 
from using those funds for lobbying the federal government; 
streamline auditing requirements; close out expired grants; and 
create a single searchable website for federal award and 
subaward data.\9\
---------------------------------------------------------------------------
    \9\Lobbying Disclosure Act of 1995, Pub. L. 104-65; Single Audit 
Act Amendments of 1996, Pub L. 104-65; Grants Oversight and New 
Efficiency Act of 2014, Pub L. 114-117; Federal Funding Accountability 
and Transparency Act of 2006, Pub. L. 109-282. Digital Accountability 
and Transparency Act of 2014, Pub. L. 113-101.
---------------------------------------------------------------------------
    The Committee's most recent legislative effort to 
streamline grant administration was led by Senators Peters and 
Lankford with the Grant Reporting Efficiency and Agreements 
Transparency (GREAT) Act of 2019. That Act directed OMB to 
implement common data standards for grant application and 
reporting.\10\ At a May 2, 2023 hearing on improving access to 
grants for underserved communities, the Committee heard 
testimony from Jeff Arkin, Managing Director at GAO, who 
indicated that the GREAT Act had yet to be implemented because 
of the challenges of coordinating grant administration across 
the federal government.\11\ Witnesses at the hearing also 
discussed the challenges caused by a lack of federal 
coordination and strategy, including difficulties in searching 
for grants, understanding notice of funding opportunities, and 
complying with inconsistently applied program guidance.\12\
---------------------------------------------------------------------------
    \10\Grant Reporting Efficiency and Agreements Transparency Act of 
2019, Pub. L. 116-103.
    \11\Senate Committee on Homeland Security and Governmental Affairs, 
Improving Access to Federal grants for Underserved Communities, 118th 
Cong. (May 2, 2023) (S. Hrg. 118-XXX).
    \12\Id.
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    This bill builds upon the Committee's previous work to 
improve grant administration and responds to concerns shared by 
communities and organizations that receive grants. In 
establishing the Grants Council, this bill formalizes 
coordination and reestablishes a forum for implementing 
interagency grant streamlining policies. The legislation tasks 
the Grants Council with the responsibility to implement the 
common data standards set forth in the GREAT Act. Other 
responsibilities assigned to the Council include simplifying 
notice of funding opportunities, improving data sharing, and 
ensuring cross-agency compliance with existing grant policies. 
Agencies are expected to build on this work by creating their 
own grants improvement plans.

                        III. LEGISLATIVE HISTORY

    Senator Gary Peters (D-MI) introduced S. 2286, the 
Streamlining Federal Grants Act of 2023, on July 12, 2023, with 
original cosponsor Senator John Cornyn (R-TX). The bill was 
referred to the Committee on Homeland Security and Governmental 
Affairs. Senator James Lankford (R-OK) joined as an additional 
cosponsor on July 13, 2023, and Senators Mike Braun (R-IN) and 
Raphael Warnock (D-GA) joined as additional cosponsors on July 
27, 2023.
    The Committee considered S. 2286 at a business meeting on 
July 26, 2023. At the business meeting, Senators Peters offered 
a substitute amendment to the bill and a modification to the 
substitute amendment. The Peters substitute amendment, as 
modified, clarified the definition of ``nonprofit,'' directed 
the Grants Council to promote language access and develop 
policies to prevent conflicts of interest, and included a new 
GAO report on barriers to accessing federal grants. The 
Committee adopted the modification to the Peters substitute 
amendment by unanimous consent, with Senators Peters, Hassan, 
Rosen, Padilla, Paul, Lankford, and Scott present. The 
Committee adopted the Peters substitute amendment, as modified, 
by unanimous consent, with Senators Peters, Hassan, Rosen, 
Padilla, Paul, Lankford, and Scott present.
    Senator Paul offered an amendment to the bill and a 
modification to the amendment. The Paul amendment added a two 
year sunset to the bill, and the modification added language 
that sought to expand reporting requirements for grant 
recipients. The modification was adopted by unanimous consent, 
with Senators Peters, Hassan, Sinema, Rosen, Padilla, Paul, 
Lankford, and Scott present. The Committee did not adopt the 
Paul amendment, as modified, by a roll call vote of 6 yeas to 9 
nays, with Senators Paul and Scott voting in the affirmative, 
and Senators Peters, Hassan, Sinema, Rosen, Padilla, and 
Lankford voting in the negative. Senators Johnson, Romney, 
Hawley, and Marshall voted yea by proxy, and Senators Carper, 
Ossoff, and Blumenthal voted nay by proxy.
    Senator Scott offered an amendment that required agency 
heads to ensure that all grants are merit based. The Committee 
did not adopt the Scott amendment by a roll call vote of 6 yeas 
to 9 nays, with Senators Paul and Scott voting in the 
affirmative, and Senators Peters, Hassan, Sinema, Rosen, 
Padilla, and Lankford voting in the negative. Senators Johnson, 
Romney, Hawley, and Marshall voted yea by proxy, and Senators 
Carper, Ossoff, and Blumenthal voted nay by proxy.
    Senator Scott offered an amendment that required agency 
heads to create a mechanism to rescind grant funds if grant 
recipients do not meet expected levels of performance. The 
Committee did not adopt the Scott amendment by a roll call vote 
of 6 yeas to 9 nays, with Senators Paul and Scott voting in the 
affirmative, and Senators Peters, Hassan, Sinema, Rosen, 
Padilla, and Lankford voting in the negative. Senators Johnson, 
Romney, Hawley, and Marshall voted yea by proxy, and Senators 
Carper, Ossoff, and Blumenthal voted nay by proxy.
    Senator Scott offered an amendment that required state or 
local governments to contribute at least a 50 percent match to 
federal grants. The Committee did not adopt the Scott amendment 
by a roll call vote of 6 yeas to 9 nays, with Senators Paul and 
Scott voting in the affirmative, and Senators Peters, Hassan, 
Sinema, Rosen, Padilla, and Lankford voting in the negative. 
Senators Johnson, Romney, Hawley, and Marshall voted yea by 
proxy, and Senators Carper, Ossoff, and Blumenthal voted nay by 
proxy.
    The bill, as amended by the Peters substitute amendment as 
modified, was ordered reported favorably by a roll call vote of 
6 yeas to 2 nays, with Senators Peters, Hassan, Sinema, Rosen, 
Padilla, and Lankford voting in the affirmative, and Senators 
Paul and Scott voting in the negative. Senators Carper, Ossoff, 
Blumenthal, Johnson, Romney, Hawley, and Marshall voted yea by 
proxy, for the record only.

        IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title

    This section establishes the short title of the bill as the 
``Streamlining Federal Grants Act of 2023.''

Section 2. Purpose

    This section specifies that the purpose of the bill is to 
improve the effectiveness of federal grants, simplify grant 
applications and reporting, improve service delivery of grants 
with particular regard to underserved communities and 
organizations, and facilitate coordination among agencies.

Section 3. Definitions

    This section provides definitions for ``agency,'' ``agency 
co-chair,'' ``appropriate congressional committees,'' 
``consultation with non-Federal entities,'' ``cooperative 
agreement,'' ``Council,'' ``Director,'' ``Federal financial 
assistance,'' ``grant,'' ``Indian Tribe,'' ``institution of 
higher education,'' ``local government,'' ``non-Federal 
entity,'' ``nonprofit organization,'' ``senior agency official 
for grants,'' and ``State.''

Section 4. Senior agency officials for grants

    Subsection (a) requires that within 60 days of enactment, 
the head of an agency shall designate a senior agency official 
for grants who will carry out the responsibilities of the 
agency under this bill.
    Subsection (b) instructs the Director of OMB to publicly 
maintain a list of the senior agency officials for grants and 
make the list publicly available within 90 days of enactment.

Section 5. Grants council

    Subsection (a) requires the Director of OMB to establish 
the Grants Council within 80 days of the enactment of this 
legislation.
    Subsection (b) requires the Council's membership to include 
the Controller of the Office of Federal Financial Management 
(as chair), senior agency officials for grants, and other 
relevant officials at the discretion of the Chair.
    Subsection (c) requires the General Services Administration 
to provide administrative support to the Council.
    Subsection (d) requires the Director to consistently and 
regularly solicit feedback for the Council's work from non-
federal entities and incorporate that feedback into the 
Council's work.
    Subsection (e) describes the mechanism for determining a 
rotating agency co-chair and working groups.
    Subsection (f) establishes the interagency duties of the 
Council, which include implementing shared grant data 
standards, simplifying notice of funding opportunities, 
improving interagency coordination of data sharing, improving 
timeliness and quality of data reporting, ensuring compliance 
with federal grants policy, supporting the development of the 
federal grants workforce, promote language access, establish 
policies to reduce conflicts of interest, and other interagency 
grants streamlining priorities.
    Subsection (g) requires reporting on the implementation on 
the bill to the appropriate Congressional committees every two 
years for 15 years, beginning 1 year after enactment.
    Subsection (h) directs the Director of OMB, in consultation 
with the Council, to compile a report containing 
recommendations for changes in law and regulation no later than 
4 years after enactment to improve the effectiveness, 
performance, and coordination of grant and cooperative 
agreement programs.

Section 6. Agency grant improvement plans

    Subsection (a) requires the Director of OMB, in 
consultation with the Council, to issue agency guidance for 
developing agency plans for improving grants and cooperative 
agreements no later than 270 days after enactment. The plans 
must describe how agencies will streamline and simplify grant 
procedures, create streamlined notice of funding opportunities, 
participate in the Grants Council, cooperate with the Grants 
Quality Service Management Office, ensure potential grant 
recipients receive training and assistance, improve grant 
recipient data reporting, and establish performance metrics to 
further the purposes of this legislation.
    Subsection (b) directs the Director of OMB to review agency 
plans.
    Subsection (c) allows the Director of OMB to exempt 
agencies who do not administer a significant number of grants 
and cooperative agreements from the requirements of this 
legislation. The Director of OMB will make the list of agencies 
exempted from review available on the OMB website.
    Subsection (d) requires each agency, not later than 1 year 
after the Director of OMB issues guidance or after 635 days, 
whichever is sooner, to create a grant improvement plan.
    Subsection (e) allows the Director of OMB to give an agency 
a 1-year extension for agencies to develop a grant improvement 
plan.
    Subsection (f) requires the head of each agency to publish 
the plan in the Federal Register and provide an opportunity for 
public comment. The senior agency official for grants may also 
consult with non-federal entities during the development of the 
plan.
    Subsection (g) requires the senior agency official for 
grants to submit a report on the implementation and performance 
of the plan, no later than 1 year after submission of the plan 
and then annually thereafter. The reporting goals shall also be 
included in the agency's annual performance plan.

Section 7. Grants.gov

    Subsection (a) requires the Director of OMB and the 
Secretary of HHS to create a separate report pertaining to the 
user experience of Grants.gov with recommendations for 
improvements no later than 1 year after enactment.
    Subsection (b) requires that the Director of OMB and the 
Secretary of HHS implement the recommendations of the report 
from section 7(a) no later than 3 years after enactment.

Section 8. Analysis of access to federal grants

    This section requires that within 2 years of enactment, the 
Comptroller General provide an analysis of access to federal 
grants, including challenges faced by underserved communities, 
specific barriers to access preventing underserved communities 
from receiving grants, and options for improving access. 
Additionally, the Comptroller General shall examine the extent 
to which agencies collect information on the number and 
characteristics applicants (including their geographic 
distributions) and provide an analysis of the information that 
is available.

Section 9. Evaluation

    This section requires that within 5 years of enactment, the 
Comptroller General provide a report to relevant congressional 
committees on the effectiveness of the bill, further 
recommendations to improve the bill, the performance of each 
agency in streamlining grants, and the level of coordination.

                   V. EVALUATION OF REGULATORY IMPACT

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE



    S. 2286 would require the Office of Management and Budget 
(OMB) to establish the Grants Council, which would issue 
guidelines for streamlining the administration of federal 
grants. The bill also would require the Director of OMB, the 
Secretary of Health and Human Services, and the Comptroller 
General of the United States to report to the Congress 
periodically on the bill's implementation and to recommend 
improvements to federal grant-making processes. Using 
information about similar activities, CBO estimates that the 
total cost of implementing the bill would be $12 million over 
the 2024-2028 period. The administrative cost of producing 
reports required by the bill would total $8 million and the 
cost of the Grants Council would total $4 million. Such 
spending would be subject to the availability of appropriated 
funds.
    The CBO staff contact for this estimate is Katie Zhang. The 
estimate was reviewed by Chad Chirico, Director of Budget 
Analysis.

                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

       VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    This legislation would make no change in existing law, 
within the meaning of clauses (a) and (b) of subparagraph 12 of 
rule XXVI of the Standing Rules of the Senate, because this 
legislation would not repeal or amend any provision of current 
law.

                                  [all]