[Federal Register Volume 87, Number 191 (Tuesday, October 4, 2022)]
[Rules and Regulations]
[Page 60059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21500]



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 Rules and Regulations
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  Federal Register / Vol. 87, No. 191 / Tuesday, October 4, 2022 / 
Rules and Regulations  

[[Page 60059]]



AGENCY FOR INTERNATIONAL DEVELOPMENT

2 CFR Part 700

RIN 0412-AB01


USAID Grant Regulations: Removing the Program Income Restriction 
on For-Profit Entities

AGENCY: U.S. Agency for International Development.

ACTION: Final rule.

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SUMMARY: The U.S. Agency for International Development (USAID) is 
issuing a final rule amending its grant regulations to remove a 
prohibition on for-profit entities from adding program income to a 
Federal award. This change allows any USAID assistance recipient--
whether nonprofit or for-profit--to add program income earned by the 
recipient to the Federal award. This will align USAID's approach to 
program income with other Federal agencies.

DATES: Effective November 3, 2022.

FOR FURTHER INFORMATION CONTACT: Lyudmila Bond, USAID/M/OAA/P, 202-285-
8319, or [email protected] for clarification of content or 
information pertaining to status or publication schedules. All 
communications regarding this rule must cite RIN No. 0412-AB01.

SUPPLEMENTARY INFORMATION:

A. Background

    USAID published a proposed rule on June 17, 2022 (87 FR 36411), to 
amend 2 CFR part 700 to allow any USAID assistance recipient--whether 
nonprofit or for-profit--to use the ``addition method'' for managing 
program income under a Federal award, aligning USAID's approach to 
program income with the U.S. Government-wide approach. The public 
comment period closed on August 16, 2022.

B. Discussion and Analysis

    Only one respondent submitted a public comment in response to the 
proposed rule. USAID reviewed the comment, but it was outside of the 
scope of the rule. As a result, no changes were made to the final rule.

C. Regulatory Considerations and Determinations

1. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

2. Regulatory Flexibility Act

    The rule will not have an impact on a substantial number of small 
entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq. Therefore, an Initial Regulatory Flexibility Analysis has 
not been performed.

3. Paperwork Reduction Act

    The rule does not establish a new collection of information that 
requires the approval of the Office of Management and Budget under the 
Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 2 CFR Part 700

    Grant programs, Grants administration.

    For the reasons discussed in the preamble, USAID amends 2 CFR part 
700 as set forth below:

PART 700--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND 
AUDIT REQUIREMENTS FOR FEDERAL AWARDS

0
1. The authority citation for 2 CFR part 700 continues to read as 
follows:

    Authority: Sec. 621, Public Law 87-195, 75 Stat 445, (22 U.S.C. 
2381) as amended, E.O. 12163, Sept 29, 1979, 44 FR 56673; 2 CFR 1979 
Comp., p. 435.


Sec.  700.13   [Amended]

0
2. Amend Sec.  700.13 by removing and reserving paragraph (a)(2).

Mark Anthony Walther,
Chief Acquisition Officer.
[FR Doc. 2022-21500 Filed 10-3-22; 8:45 am]
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