[Federal Register Volume 88, Number 127 (Wednesday, July 5, 2023)]
[Proposed Rules]
[Pages 42891-42900]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13819]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 80

RIN 2900-AR68


Veteran and Spouse Transitional Assistance Grant Program

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA), as authorized under 
the Johnny Isakson and David P. Roe, M.D.

[[Page 42892]]

Veterans Health Care and Benefits Improvement Act of 2020, proposes 
regulations to establish the Veteran and Spouse Transitional Assistance 
Grant Program (VSTAGP). VA would establish grant application procedures 
and evaluative criteria for determining whether to issue funding to 
eligible organizations providing transition services to former members 
of the Armed Forces who were separated, retired, or discharged, as well 
as their spouses.

DATES: Comments must be received on or before August 4, 2023.

ADDRESSES: Comments must be submitted through www.Regulations.gov. 
Except as provided below, comments received before the close of the 
comment period will be available at www.Regulations.gov for public 
viewing, inspection, or copying, including any personally identifiable 
or confidential business information included in a comment. We post the 
comments received before the close of the comment period on the 
following website as soon as possible after they have been received: 
www.Regulations.gov. VA will not post on www.Regulations.gov public 
comments that make threats to individuals or institutions or suggest 
that the commenter will take actions to harm an individual. VA 
encourages individuals not to submit duplicative comments. We will post 
acceptable comments from multiple unique commenters even if the content 
is identical or nearly identical to other comments. Any public comment 
received after the comment period's closing date is considered late and 
will not be considered in the final rulemaking.

FOR FURTHER INFORMATION CONTACT: Kenneth Fenner, Program Analyst, 
Outreach, Transition and Economic Development, Veterans Benefits 
Administration, 1800 G Street SW, Washington, DC 20006; 202-461-9412 
(this is not a toll-free telephone number). If you use a 
telecommunications device for the deaf (TDD) or a text telephone (TTY), 
call the Federal Relay Service (FRS) toll-free at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: Public Law 116-315, the Johnny Isakson and 
David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 
2020 (the Act), was enacted on January 5, 2021. Section 4304 of the 
Act, codified at 38 U.S.C. 4100 note, authorizes the Secretary of 
Veterans Affairs (SECVA) to establish a grant program and issue grants 
to eligible organizations for the provision of transition services to 
former members of the Armed Forces who were separated, retired, or 
discharged from the Armed Forces, and spouses of such former members. 
SECVA delegated authority for implementing section 4304 to the Office 
of Outreach, Transition and Economic Development (OTED) within VA's 
Veterans Benefits Administration. VA proposes to amend its regulations 
by adding Sec. Sec.  80.1 through 80.17 of title 38 CFR to implement 
this new grant authority.
    According to the U.S. Department of Labor's Transition Assistance 
Program, approximately 200,000 men and women leave U.S. military 
service and return to civilian life each year. This process is known as 
the military-to-civilian transition. In a study published in 2015, more 
than 8,500 Veterans, active-duty Service members, National Guard and 
Reserve members, and military dependents identified their most 
significant transition challenges as:
     Navigating VA programs, benefits, and services (60%);
     Finding a job (55%);
     Adjusting to civilian culture (41%);
     Addressing financial challenges (40%); and
     Applying military-learned skills to civilian life 
(39%).\1\
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    \1\ Zoli, C., Maury, R., & Fay, D. (2015). Missing perspectives: 
Servicemembers' transition from service to civilian life. https://surface.syr.edu/ivmf/7/.
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    While a plethora of services exist to assist former Service members 
with their post-military transition, barriers persist limiting 
Veterans' ability to use them effectively.\2\ A 2021 survey conducted 
by the George W. Bush Institute found that 55% of Veterans ``who needed 
but did not receive employment services did not know how to access 
them,'' and roughly a third of Veterans ``who needed but did not 
receive education benefits did not know how to access them.'' \3\ 
Furthermore, there is a need to more specifically address the post-
discharge needs of unique subgroups. For example, most existing 
transition-related literature focuses on male Veterans' experience, yet 
based on a national survey conducted in 2019, only 12% of women 
Veterans reported satisfaction with available resources.
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    \2\ Morgan et al. (2020). Reducing barriers to post-9/11 
veterans' use of programs and services as they transition to 
civilian life. BMC Health Services Research 20, 525. https://doi.org/10.1186/s12913-020-05320-4.
    \3\ George W. Bush Institute. (2021). Stand-To 2021: Advancing 
Veteran Employment, Education, & Health and Well-Being. https://gwbcenter.imgix.net/Resources/gwb-ivmf-stand-to-2021.pdf.
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    To assist VSTAGP participants in addressing these challenges and in 
response to section 4304 of the Act, Outreach, Transition, and Economic 
Development (OTED) would issue grants to eligible organizations to 
provide transition services to former members of the Armed Forces who 
were separated, retired, or discharged, as well as their spouses. 
VSTAGP is intended to be a workforce program providing intensive 
client-centered case management services tailored to the unique 
employment needs of program participants. In this respect, VSTAGP will 
compliment other workforce programs and will assist Veterans and their 
spouses with navigating numerous transitional resources. VA proposes to 
accept applications from organizations that can determine a definitive 
need for the project in a defined service delivery area, such as those 
currently providing transition services and organizations desiring to 
provide transition services. Allowable transition services could 
include resume assistance, interview training, job recruitment training 
and related services that would result in a successful transition as 
determined by the Secretary. Related services would include, but are 
not limited to, employment placement services, employment education 
and/or training and employment referrals. To the extent feasible, 
services should be informed by existing evidence on effective 
approaches to supporting the transition, including research on 
evidence-based workforce development approaches.
    Applications for VSTAGP funding proposals must clearly show through 
a comprehensive and coherent narrative how they will place program 
participants into jobs that are meaningful and sustainable. Successful 
applicants must describe their overall approach and strategy for 
providing a set of employment services leading to the successful 
transition of members of the U.S. Armed Forces who are separated, 
retired, or discharged, as well as their spouses. The strategy must 
include procedures for outreach, assessment, intake and follow-up 
services that enhance transition, as well as any other anticipated 
outcome. Applicants must also identify and fully describe the support 
services that will be provided to participants as part of the 
applicant's strategy to promote, prepare and improve the participant's 
transition. A participant flow chart, Gantt chart or similar graphic to 
show the sequence and mix of services is also required. Examples of 
historically successful placement strategies are on-the-job

[[Page 42893]]

training (OJT), registered apprenticeship, pre-arranged placements, 
direct hire, collaboration with temporary to permanent agencies and 
partnerships with trade schools that guarantee high permanent 
employment placement rates. Further, applicants must include detailed 
budgets for their proposed project to include a concise narrative to 
support the budget request. Applicants must propose a budget that 
supports the targeted population, the service delivery area(s) and the 
Veterans and spouses to be served.
    Awarded programs will be expected to conduct outreach, intake and 
assessment, employment training, job placement, and employment 
retention services.
    Proposed Sec.  80.1 would set forth the purpose of VSTAGP, as noted 
above. As this is a new VA authority, we propose to define terms in 
Sec.  80.2 that would be referenced in Sec. Sec.  80.1 through 80.17. 
For the ``eligible recipient (organization)'' definition, we propose to 
list various entities that currently are providing or may desire to 
provide transition services described in section 4304(b) of the Act and 
then provide more specific definitions of the listed entities (a list 
of entity definitions can be found on pages 27-30). We also propose to 
define the term ``participant'' as a former member of the U.S. Armed 
Forces who was separated, retired, or discharged from the U.S. Armed 
Forces or spouse of such former member who receives services for which 
a VSTAGP grant is awarded.
    In Sec.  80.3, we would provide general information about VSTAGP 
grants. For example, Sec.  80.3(b) would state that the maximum amount 
of a grant award to a grantee and the total maximum amount available 
for all grants would be specified in the Notice of Funding Opportunity 
(NOFO). Section 80.3(d) would clarify that an eligible entity may 
receive only one VSTAGP grant and that VA would award only one VSTAGP 
grant in any one location as specified in the NOFO. Section 80.3(e) 
would provide that a VSTAGP grant would be awarded for a maximum period 
of 5 years. Section 80.3(f) would note the statutory funds matching 
requirement for grantees, and Sec.  80.3(g) would prohibit a grantee 
from charging fees to a participant or requiring a participant to 
participate in other activities sponsored by the grantee.
    VA would publish at www.grants.gov a NOFO that would include the 
grant application and other requirements. The Office of Management and 
Budget (OMB) requires the issuance of a NOFO and publication of other 
information to ensure that eligible organizations have the information 
required to apply for grants. Proposed Sec.  80.4 would set out certain 
provisions that would be included in a NOFO which is also required per 
appendix I to 2 CFR part 200--Full Text of the Notice of Funding 
Opportunity, including instructions on how interested parties could 
apply for a grant. At a minimum, the NOFO will include application 
filing requirements, scoring criteria, deadlines for submission, 
estimates of the total available funding, the maximum funding available 
to a single grantee, a description of eligible entities or other 
eligibility requirements necessary to receive the grant and a 
description of the program including the program goals and objectives, 
a reference to the relevant Assistance Listings, and a description of 
how the award will contribute to the achievement of the program's goals 
and objectives. These components are consistent with 2 CFR 200.203, 
which requires the issuance of a NOFO that includes information 
describing the funding opportunity, eligible organizations, application 
submission and review, and Federal award administration requirements. 
Additional information in a NOFO would include cost sharing or matching 
information, priority preferences, description of allowable uses/
activities, timeframes and manner of grant payments, reporting 
requirements, evaluation criteria, and other information commonly 
utilized in Federal grant programs that VA deems necessary for the 
application process.
    We propose to describe in Sec.  80.5 that, to apply for a VSTAGP 
grant, an applicant must submit a complete grant application package as 
described in a NOFO posted at www.grants.gov. An applicant may need to 
provide a well-articulated project narrative that describes proposed 
program services that would best address the scope of the NOFO. The 
content that may be required in the narrative may have to describe 
program design (including outreach), recruitment and engagement plans, 
assessments process, identify any local area network service providers 
and address the applicant's ability and capacity to administer the 
grant.
    In selecting awardees, VA will want to consider an applicant's 
experience with similar programs as defined by the NOFO or related work 
in that particular field or subject matter. Applicants will need to 
propose a budget of costs and proposed expenditures. Other budgetary 
requirements may be included in the NOFO. These disclosures will help 
VA to more fully assess the extent to which an applicant has considered 
all aspects of planning and the likelihood of successful completion of 
grant objectives. Because grants awarded under this program require 
cost-sharing or matching funds, an applicant will have to provide 
evidence of secured cash matching funds from non-Federal sources that 
are at least equal to Federal grant funds awarded by VA or an 
explanation of the applicant's ability to secure commitments to receive 
such funding. In this section, VA also proposes a catch-all provision 
to allow for flexibility in assessing proposed budget narrative to 
including matching fund requirements that would be published in the 
NOFO. Applicants, whether successful or not, would not be entitled to 
reimbursement of pre-award costs.
    As proposed under Sec.  80.7, VA would review completed grant 
applications, as described in the NOFO. Applications would have to be 
submitted on time and meet the minimum application and other NOFO 
requirements. The NOFO would include information about the scoring 
process and clarify the minimum point totals per scoring category that 
an applicant must receive to be considered for a grant. Proposed Sec.  
80.7(b) would explain how VA would score and rank the grant applicants 
and select grant recipients. VA would rate all grant applications 
against each other to determine the likelihood of successful 
implementation of the grant program published in the NOFO and would 
consider other factors, as explained in Sec.  80.6, when evaluating an 
applicant's qualifications for the grant award. Factors such as an 
applicant's past performance on a prior award, an applicant's fiscal 
integrity, or risk assessments are examples of other considerations 
that would affect VA's scoring of grant applications. VA would conduct 
a risk assessment prior to issuing VSTAGP awards. The results of this 
pre-award risk assessment would be used to determine if specific terms 
and conditions are needed upon award. Grants would be awarded based on 
a competitive application process. Section 4304 provides priority 
preferences for organizations that either (1) provide multiple forms of 
services, or (2) are located in a State with (a) a high rate of 
unemployment among Veterans; (b) a high rate of usage of unemployment 
benefits for recently separated members of the Armed Forces; or (c) a 
labor force or economy that has been significantly impacted by a 
covered public health emergency. Any grant made would have to be 
matched by the recipient organization with funds at least equal to the 
funds awarded by VA.
    As proposed under Sec.  80.8, VA may approve VSTAGP grant 
applications in whole or in part subject to conditions

[[Page 42894]]

VA deems necessary to ensure full flexibility in meeting Departmental 
or programmatic goals as identified in the NOFO. VA may also disapprove 
an application because it does not rank sufficiently high in relation 
to other applications. Further, VA may defer action on applications for 
reasons that require further review or additional time to meet grant 
requirements, such as lack of funds. In all instances, VA would convey 
decisions in writing to applicants on all grant submissions. As noted, 
under proposed Sec.  80.17, VA application decisions are discretionary 
and are not subject to appeal.
    VA proposes to include a withdrawal provision in Sec.  80.9. 
Applicants would be able to submit a request in writing to the VA point 
of contact specified in the published NOFO to withdraw their 
application from consideration. Applicants should provide a rationale 
for the withdrawal request.
    For grant awards, VA proposes in Sec.  80.10 to memorialize the 
awards in an agreement, in accordance with the terms set out in Sec.  
80.10 and in the NOFO. As a condition of receiving a VSTAGP grant, 
grantees and grantee subrecipients (e.g., contractors and other 
entities utilized by a grantee to execute grant requirement), would 
have to agree to operate their programs in accordance with VA 
regulations in proposed Sec. Sec.  80.1 through 80.17, Federal 
regulations in 2 CFR part 200 and parts 25 and 170, if applicable, the 
information provided in the grant application, and the terms of the 
grant agreement. Part 200 provides uniform guidance and government-wide 
terms and conditions for the management of awards and the 
administration of Federal grants. This rulemaking provides additional 
guidance and conditions specifically for administering VSTAGP grants. 
Adherence to the government-wide rules would be mandatory, and 
compliance with the additional rules specific to VSTAGP grants would 
ensure program integrity across all VSTAGP grants and VA awards. 
Pursuant to proposed Sec.  80.10(b)(3), included among those terms 
would be the grantees' compliance with recordkeeping and reporting 
requirements provided in proposed Sec.  80.16 and as specified in the 
Terms and Conditions section of the grant agreement. Under proposed 
Sec.  80.12, within 120 days after the last day of the grant period, 
grantees would have to submit a final report to VA that meets the 
requirements set forth in the NOFO.
    Additionally, upon execution of the grant agreement, VA would 
obligate grant funds, as provided in proposed Sec.  80.11, to the 
extent such costs are authorized by VA in the NOFO or the grant 
agreement or authorized subsequently by VA in writing, should the need 
arise.
    As proposed in Sec.  80.13(a), VA may terminate a grant agreement 
if a grantee does not comply with the terms of the grant agreement. 
Under proposed Sec.  80.13(b), if VA determines that recovery of funds 
is necessary for violations of the grant agreement or unauthorized use 
of grant funds, VA would notify grantees in writing of the intent to 
recover grant funds. Grantees would have 30 days to submit 
documentation refuting the proposed recovery, which VA would review for 
a final determination. If VA makes a final decision that action would 
be taken to recover grant funds from the grantee, VA would stop further 
payments of grant funds under this part until the grant funds are 
recovered and the condition that led to the decision to recover grant 
funds has been resolved, unless the grant agreement has been 
terminated. If the grant agreement has been terminated, no future 
payments would be issued upon recovery. VA believes these measures 
would help safeguard Federal funds and ensure the appropriate use of 
the VSTAGP grant funds awarded.
    As part of VA's duty to ensure fiscal responsibility, VA proposes 
in Sec.  80.14 to conduct site visits to grantee locations to review 
grantee accomplishments and management control systems. In addition, VA 
may conduct, as needed, inspections of grantee records to determine 
compliance with the provisions of this part. All visits and evaluations 
would be performed with minimal disruption to the grantee to the extent 
practicable. Further, as proposed in Sec.  80.15, VA would enforce 2 
CFR part 200 regulations to ensure all VSTAGP grant recipients comply 
with the requirements of the Single Audit Act of 1996 and use a 
compliant financial management system based on OMB cost principles. As 
proposed in Sec.  80.16, grantees would have to produce, upon VA's 
request, records maintained in accordance with 2 CFR 200.337.

Executive Orders 12866, 13563 and 14094

    Executive Order 12866 (Regulatory Planning and Review) directs 
agencies to assess the costs and benefits of available regulatory 
alternatives and, when regulation is necessary, to select regulatory 
approaches that maximize net benefits (including potential economic, 
environmental, public health and safety effects, and other advantages; 
distributive impacts; and equity). Executive Order 13563 (Improving 
Regulation and Regulatory Review) emphasizes the importance of 
quantifying both costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility. Executive Order 14094 (Executive Order on 
Modernizing Regulatory Review) supplements and reaffirms the 
principles, structures, and definitions governing contemporary 
regulatory review established in Executive Order 12866 of September 30, 
1993 (Regulatory Planning and Review), and Executive Order 13563 of 
January 18, 2011 (Improving Regulation and Regulatory Review). The 
Office of Information and Regulatory Affairs has determined that this 
rulemaking is a significant regulatory action under Executive Order 
12866, as amended by Executive Order 14094. The Regulatory Impact 
Analysis associated with this rulemaking can be found as a supporting 
document at www.regulations.gov.

Regulatory Flexibility Act

    The Secretary hereby certifies that this proposed rule would not 
have a significant economic impact on a substantial number of small 
entities as they are defined in the Regulatory Flexibility Act (5 
U.S.C. 601-612). Receiving or not receiving a grant is unlikely to have 
a significant economic impact on small entity applicants. Therefore, 
pursuant to 5 U.S.C. 605(b), the initial and final regulatory 
flexibility analysis requirements of 5 U.S.C. 603--604 do not apply.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local and tribal governments, in the aggregate or by the private 
sector, of $100 million or more (adjusted annually for inflation) in 
any one year. This proposed rule would have no such effect on State, 
local and tribal governments or on the private sector.

Paperwork Reduction Act

    This proposed rule contains provisions constituting new collections 
of information under the provisions of the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3521) that require approval by OMB. Accordingly, 
under 44 U.S.C. 3507(d), VA has submitted a copy of this rulemaking 
action to OMB for review and approval.
    OMB assigns control numbers to collections of information it 
approves. VA may not conduct, or sponsor, and a person is not required 
to respond to, a

[[Page 42895]]

collection of information unless it displays a currently valid OMB 
control number. Proposed 38 CFR 80.5, 80.12 and 80.16 contain 
collections of information under the Paperwork Reduction Act of 1995. 
If OMB does not approve the collections of information as requested, VA 
will immediately remove the provisions containing collections of 
information or take other action as directed by OMB.
    Comments on the new collections of information contained in this 
rulemaking should be submitted through www.Regulations.gov. Comments 
should indicate that they are submitted in response to ``RIN 2900-
AR68--Veteran Transitional Assistance Grant Program'' and should be 
sent within 30 days of publication of this rulemaking. The collections 
of information associated with this rulemaking can be viewed at: 
www.reginfo.gov/public/do/PRAMain.
    OMB is required to make a decision concerning the collections of 
information contained in this proposed rule between 30 and 60 days 
after the publication of this document in the Federal Register. 
Therefore, a comment to OMB is best assured of having its full effect 
if OMB receives it within 30 days of publication. This does not affect 
the deadline for the public to comment on the proposed rule. Notice of 
OMB approval for this information collection will be published in a 
future Federal Register document.
    The Department considers comments by the public on proposed 
collections of information in:
     Assessing whether the proposed collections of information 
are necessary for the proper performance of the functions of the 
Department, including whether the information will have practical 
utility;
     Assessing the accuracy of the Department's estimate of the 
burden of the proposed collections of information, including the 
validity of the methodology and assumptions used;
     Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
     Minimizing the burden of the collections of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, such as permitting 
electronic submission of responses.
    The collections of information contained in 38 CFR 80.5, 80.12 and 
80.16 are described immediately following this paragraph.

Title: SF-424 Application for Federal Assistance.
OMB Control No: 2900-8080

     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.5 would require VSTAGP grant 
applicants to submit the SF-424 as a minimum requirement to qualify for 
a VSTAGP grant.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
determine applicant eligibility for a VSTAGP grant. VA would use this 
information to score completed grant applications.
     Description of likely respondents: Eligible recipients, as 
defined in proposed Sec.  80.2, that are interested in applying for a 
VSTAGP grant.
     Estimated number of respondents: 200 per year.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 1 hour.
     Estimated total annual reporting and recordkeeping burden: 
1 hour.
     Estimated annual cost to respondents for the hour burdens 
for collections of information: According to the U.S. Bureau of Labor 
Statistics Mean Hourly Earnings, the cost to each respondent would be 
$28.01, making the total cost for respondents an estimated $5,602.00 
(200 respondents x 1 burden hour x $28.01 per hour). (Source: May 2021 
BLS National Occupational Employment and Wage Estimates, Code: 00-0000, 
All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000).
     Estimated cost to the Federal Government: There is no 
projected incremental increase in the cost burden to the Federal 
Government with the requirement of the SF-424, Application for Federal 
Assistance. OTED currently has existing personnel, systems, and 
processes (or other resources) in place to receive and review their 
grant applications. Any additional cost for agency system development, 
maintenance, and enhancements should not be attributed to the use of 
SF-424, and therefore its use is not expected to alter annualized 
Federal costs.

Title: SF-424A Budget Information--Non-Construction Programs
OMB Control No: 4040-0006

     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.5 would require VSTAGP grant 
applicants to submit the SF-424A as a minimum requirement to qualify 
for a VSTAGP grant.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
determine applicant eligibility for a VSTAGP grant, to document 
proposed costs, and to determine allowability of proposed costs. VA 
would use this information to score completed grant applications and 
for general management of VSTAGP awards.
     Description of likely respondents: Eligible recipients, as 
defined in proposed Sec.  80.2, that are interested in applying for a 
VSTAGP grant.
     Estimated number of respondents: 200 per year.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 3 hours.
     Estimated total annual reporting and recordkeeping burden: 
3 hours.
     Estimated annual cost to respondents for the hour burdens 
for collections of information: According to the U.S. Bureau of Labor 
Statistics Mean Hourly Earnings, the cost to each respondent would be 
$84.03, making the total cost for respondents an estimated $16,806.00 
(200 respondents x 3 burden hours x $28.01 per hour). (Source: May 2021 
BLS National Occupational Employment and Wage Estimates, Code: 00-0000, 
All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000).
     Estimated cost to the Federal Government: There is no 
projected incremental increase in the cost burden to the Federal 
Government with the requirement of the SF-424A, Budget Information--
Non-Construction Programs. OTED currently has existing personnel, 
systems, and processes (or other resources) in place to receive and 
review their grant applications. Any additional cost for agency system 
development, maintenance, and enhancements should not be attributed to 
the use of the SF-424A, and therefore its use is not expected to alter 
annualized Federal costs.

Title: 4040-0010 Project/Performance Site Location(s)
OMB Control No: 4040-0010

     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.5 would require VSTAGP grantees to 
submit the primary location and any other locations where project 
activity would occur.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
ensure adequate geographic coverage.

[[Page 42896]]

     Description of likely respondents: Eligible recipients, as 
defined in proposed Sec.  80.2, that are interested in applying for a 
VSTAGP grant.
     Estimated number of respondents: 200 per year.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 5 minutes.
     Estimated total annual reporting and recordkeeping burden: 
5 minutes.
     Estimated annual cost to respondents for the hour burdens 
for collections of information: According to the U.S. Bureau of Labor 
Statistics Mean Hourly Earnings, the cost to each respondent would be 
$2.33, making the total cost for respondents an estimated $466.83 (200 
respondents x ((5 burden minutes x $28.01 per hour)/60 minutes)). 
(Source: May 2021 BLS National Occupational Employment and Wage 
Estimates, Code: 00-0000, All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000).
     Estimated cost to the Federal Government: There is no 
projected incremental increase in the cost burden to the Federal 
Government with the requirement of the 4040-0010 Project/Performance 
Site Location(s). OTED currently has existing personnel, systems, and 
processes (or other resources) in place to receive and review their 
grant applications. Any additional cost for agency system development, 
maintenance, and enhancements should not be attributed to the use of 
form 4040-0010 Project/Performance Site Location(s), and therefore its 
use is not expected to alter annualized Federal costs.
Title: 4040-0013 Certification Regarding Lobbying
OMB Control No: 4040-0013

     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.5 would require VSTAGP applicants 
to submit the Certification Regarding Lobbying form if requesting an 
award greater than $100,000.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary for 
applicants to attest to the certifications regarding lobbying. This 
collection may not be required of every applicant.
     Description of likely respondents: Eligible recipients, as 
defined in proposed Sec.  80.2, that are interested in applying for a 
VSTAGP grant.
     Estimated number of respondents: 198 per year.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 15 minutes.
     Estimated total annual reporting and recordkeeping burden: 
15 minutes.
     Estimated annual cost to respondents for the hour burdens 
for collections of information: According to the U.S. Bureau of Labor 
Statistics Mean Hourly Earnings, the cost to each respondent would be 
$7.00, making the total cost for respondents an estimated $1,386.49 
(198 respondents x ((15 burden minutes x $28.01 per hour)/60 minutes)). 
(Source: May 2021 BLS National Occupational Employment and Wage 
Estimates, Code: 00-0000, All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000).
     Estimated cost to the Federal Government: There is no 
projected incremental increase in the cost burden to the Federal 
Government with the requirement of the 4040-0013 Certification 
Regarding Lobbying. OTED currently has existing personnel, systems, and 
processes (or other resources) in place to receive and review grant 
applications. Any additional cost for agency system development, 
maintenance, and enhancements should not be attributed to the use of 
4040-0013 Certification Regarding Lobbying, and therefore its use is 
not expected to alter annualized Federal costs.

Title: Quarterly Performance Reports (IT instrument)
OMB Control No: 2900-xxxx (New/TBD)

     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.12 would require VSTAGP grantees 
to submit quarterly performance reports.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
monitor grantee performance and document the success of the program.
     Description of likely respondents: Grantees.
     Estimated number of respondents: 10 per year.
     Estimated frequency of responses: Quarterly.
     Estimated average burden per response: 1 hour per quarter.
     Estimated total annual reporting and recordkeeping burden: 
4 hours.
     Estimated annual cost to respondents for the hour burdens 
for collections of information: According to the U.S. Bureau of Labor 
Statistics Mean Hourly Earnings, the cost to each respondent would be 
$112.04, making the total cost for respondents an estimated $1,120.40 
(10 respondents x 4 burden hours x $28.01 per hour). (Source: May 2021 
BLS National Occupational Employment and Wage Estimates, Code: 00-0000, 
All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000).
     Estimated cost to the Federal Government: There is no 
projected incremental increase in the cost burden to the Federal 
Government with the requirement of the Quarterly Performance Reports 
(IT instrument). OTED currently has existing personnel, systems, and 
processes (or other resources) in place to receive and review grant 
applications. Any additional cost for agency system development, 
maintenance, and enhancements should not be attributed to the use of 
Quarterly Performance Reports (IT instrument), and therefore its use is 
not expected to alter annualized Federal costs.

Title: SF-425 Federal Financial Report
OMB Control No: 4040-0014

     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.12 would require VSTAGP grantees 
to submit quarterly financial reports to assess financial expenditure 
compliance under this grant program.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
monitor grantee compliance with financial requirements.
     Description of likely respondents: Grantees.
     Estimated number of respondents: 10 per year.
     Estimated frequency of responses: Quarterly.
     Estimated average burden per response: 1 hour per quarter.
     Estimated total annual reporting and recordkeeping burden: 
4 hours.
     Estimated annual cost to respondents for the hour burdens 
for collections of information: According to the U.S. Bureau of Labor 
Statistics Mean Hourly Earnings, the cost to each respondent would be 
$112.04, making the total cost for respondents an estimated $1,120.40 
(10 respondents x 4 burden hours x $28.01 per hour). (Source: May 2021 
BLS National Occupational Employment and Wage Estimates, Code: 00-0000, 
All Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000).
     Estimated cost to the Federal Government: There is no 
projected incremental increase in the cost burden to the Federal 
Government with the requirement of the SF-425 Federal Financial Report. 
OTED currently has existing personnel, systems, and

[[Page 42897]]

processes (or other resources) in place to receive and review grant 
applications. Any additional cost for agency system development, 
maintenance, and enhancements should not be attributed to the use of 
SF-425 Federal Financial Report, and therefore its use is not expected 
to alter annualized Federal costs.

Title: Additional Reports (IT instrument)
OMB Control No: 2900-xxxx (New/TBD)

     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.12 would require VSTAGP grantees 
to provide additional performance reports, as needed, to assess the 
provisions of services under this grant program.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
assess project accountability and effectiveness.
     Description of likely respondents: Grantees.
     Estimated number of respondents: 10.
     Estimated frequency of responses: Once.
     Estimated average burden per response: 1 hour.
     Estimated total annual reporting and recordkeeping burden: 
1 hour.
     Estimated annual cost to respondents for the hour burdens 
for collections of information: According to the U.S. Bureau of Labor 
Statistics Mean Hourly Earnings, the cost to each respondent would be 
$28.01, making the total cost for respondents an estimated $280.10 (10 
respondents x 1 burden hour x $28.01 per hour). (Source: May 2021 BLS 
National Occupational Employment and Wage Estimates, Code: 00-0000, All 
Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000).
     Estimated cost to the Federal Government: There is no 
projected incremental increase in the cost burden to the Federal 
Government with the requirement of the Additional Reports (IT 
instrument). OTED currently has existing personnel, systems, and 
processes (or other resources) in place to receive and review grant 
applications. Any additional cost for agency system development, 
maintenance, and enhancements should not be attributed to the use of 
Additional Reports (IT instrument), and therefore its use is not 
expected to alter annualized Federal costs.

Title: Recordkeeping
OMB Control No: 2900-xxxx (New/TBD)

     Summary of collection of information: The new collection 
of information in proposed 38 CFR 80.16 would require VSTAGP records to 
be maintained. VA officials are entitled access to any documents, 
papers, or other records which are pertinent to the VSTAGP award for 
audits, examinations, excerpts, and transcripts. This also includes 
timely and reasonable access to VSTAGP personnel for interviews and 
discussions related to such documents.
     Description of the need for information and proposed use 
of information: The collection of information would be necessary to 
access project records.
     Description of likely respondents: Grantees.
     Estimated number of respondents: 10.
     Estimated frequency of responses: Annually.
     Estimated average burden per response: 1 hour.
     Estimated total annual reporting and recordkeeping burden: 
1 hour.
     Estimated annual cost to respondents for the hour burdens 
for collections of information: According to the U.S. Bureau of Labor 
Statistics Mean Hourly Earnings, the cost to each respondent would be 
$28.01, making the total cost for respondents an estimated $280.10 (10 
respondents x 1 burden hour x $28.01 per hour). (Source: May 2021 BLS 
National Occupational Employment and Wage Estimates, Code: 00-0000, All 
Occupations: https://www.bls.gov/oes/current/oes_nat.htm#00-0000).
     Estimated cost to the Federal Government: There is no 
projected incremental increase in the cost burden to the Federal 
Government as a result of this requirement. OTED currently has existing 
personnel, systems, and processes (or other resources) in place to 
receive and review their grant applications. Any additional cost for 
agency system development, maintenance, and enhancements should not be 
attributed to Recordkeeping, and therefore its use is not expected to 
alter annualized Federal costs.

Assistance Listing

    The Assistance Listing number and title for the program affected by 
this document is 64.058, Veteran Transitional Assistance Grant Program.

List of Subjects in 38 CFR Part 80

    Administrative practice and procedure, Armed forces, Employment, 
Grant programs--veterans, Reporting and recordkeeping requirements, 
Transition, Veterans.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, approved and signed 
this document on May 3, 2023, and authorized the undersigned to sign 
and submit the document to the Office of the Federal Register for 
publication electronically as an official document of the Department of 
Veterans Affairs.

Jeffrey M. Martin,
Assistant Director, Office of Regulation Policy & Management, Office of 
General Counsel, Department of Veterans Affairs.

    For the reasons stated in the preamble, VA proposes to amend title 
38 by adding part 80 as set forth below:

PART 80--VETERAN TRANSITIONAL ASSISTANCE GRANT PROGRAM

Sec.
80.1 Purpose and use of grant funds.
80.2 Definitions.
80.3 Grants--general.
80.4 Notice of Funding Opportunity (NOFO).
80.5 Applications.
80.6 Additional factors for selecting applications.
80.7 Scoring and selection.
80.8 Disposition of applications.
80.9 Withdrawal of grant application.
80.10 Grant agreement.
80.11 Payments under the grant.
80.12 Grantee reporting requirements.
80.13 Termination of grant; recovery of funds.
80.14 Compliance review requirements.
80.15 Financial management.
80.16 Recordkeeping.
80.17 Non-appealability of grant award decisions.

    Authority: 38 U.S.C. 501, 512; Pub. L. 116-315, sec. 4304.


Sec.  80.1  Purpose and use of grant funds.

    Sections 80.1 through 80.17 establish the Veteran Transitional 
Assistance Grant Program (VSTAGP). Under this program, VA may provide 
grants to eligible organizations defined in Sec.  80.2 to provide 
transition services and intensive client centered case management 
services tailored to the unique employment needs of program 
participants to include, but not limited to such services, such as 
resume assistance, interview training, job recruitment training and 
related services, that will help in a successful transition from 
military to civilian life.

(Authority: Pub. L. 116-315, sec. 4304)


Sec.  80.2  Definitions.

    For purposes of this part and any Notice of Funding Opportunity 
(NOFO) issued pursuant to this part:
    (a) Applicant means an eligible organization that submits an 
application

[[Page 42898]]

for a VSTAGP grant as announced in a NOFO.
    (b) Eligible recipient (organization) means one of the following:
    (1) State government;
    (2) County government;
    (3) Local government;
    (4) Institution of Higher Education;
    (5) Indian/Native American tribal government (Federally 
recognized);
    (6) Nonprofit organization; or
    (7) Faith-based organization;
    (c) State government means any of the fifty States of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico, any 
territory or possession of the United States, or any agency or 
instrumentality of a State government.
    (d) County government means a county government entity or any 
corresponding unit of government under any other name in States that do 
not have county organizations and, in those States in which the county 
government does not have jurisdiction over highways, any local 
government unit vested with jurisdiction over local highways.
    (e) Local government means a government entity for a county; 
borough; municipality; city; town; township; parish; local public 
authority (including any public housing agency under the United States 
Housing Act of 1937); special district; school district; intrastate 
district; council of governments, whether or not incorporated as a 
nonprofit corporation under state law; and any other agency or 
instrumentality of a multi-regional, intra-State or local government.
    (f) Institution of Higher Education (IHE) means a public or private 
educational institution that provides an educational program for which 
the institution awards a bachelor's degree or provides not less than a 
2-year program that is acceptable for full credit toward such a degree, 
or awards a degree that is acceptable for admission to a graduate or 
professional degree program, subject to review and approval by the 
Secretary and is accredited by a nationally recognized accrediting 
agency or association, or if not so accredited, is an institution that 
has been granted pre-accreditation status by such an agency or 
association that has been recognized by the Secretary for the granting 
of pre-accreditation status, and the Secretary has determined that 
there is satisfactory assurance that the institution will meet the 
accreditation standards of such an agency or association within a 
reasonable time.
    (g) Indian/Native American tribal government (Federally recognized) 
means a governing body of a tribe, band, pueblo, community, village, or 
group of native American Indians, or Alaska Natives, that qualifies as 
an Indian tribal government upon a determination by the Internal 
Revenue Service that the governing body exercises governmental 
functions.
    (h) Nonprofit organization means any corporation, trust, 
association, cooperative, or other organization, not including IHEs, 
that:
    (1) Is operated primarily for scientific, educational, service, 
charitable, or similar purposes in the public interest;
    (2) Is not organized primarily for profit; and
    (3) Uses net proceeds to maintain, improve, or expand the 
operations of the organization. In accordance with section 18 of the 
Lobbying Disclosure Act of 1995 (Pub. L. 104-65) (codified at 2 U.S.C. 
1611), non-profit entities incorporated under section 501(c)(4) of the 
Internal Revenue Code that engage in lobbying activities are not 
eligible to receive Federal funds or grants. (Note: After receiving a 
grant, such organization may not engage in any activities, including 
awareness-raising or advocacy activities, that include fundraising for, 
or lobbying of, U.S. Federal, state, or local governments (see 2 CFR 
200.450 for more information).)
    (i) Faith-based organization means a nonprofit organization that is 
affiliated with, supported by, or based on a religion or religious 
group.
    (j) Grantee means an applicant that is awarded a grant under this 
part.
    (k) In-demand industry sector or occupation means:
    (1) An industry sector that has a substantial current or potential 
impact (including through jobs that lead to economic self-sufficiency 
and opportunities for advancement) on the State, regional, or local 
economy, as appropriate, and that contributes to the growth or 
stability of other supporting businesses, or the growth of other 
industry sectors; or
    (2) An occupation that currently has or is projected to have a 
number of positions (including positions that lead to economic self-
sufficiency and opportunities for advancement) in an industry sector so 
as to have a significant impact on the State, regional, or local 
economy, as appropriate.
    (l) Notice of Funding Opportunity (NOFO) means a Notice of Funding 
Opportunity published by VA at Grants.gov (https://www.grants.gov) 
alerting eligible entities of the availability of VSTAGP grants and 
containing information about the VSTAGP grant application process in 
accordance with Sec.  80.4.
    (m) Grant agreement means a legal instrument of financial 
assistance between a Federal awarding agency or pass-through entity and 
a non-Federal entity that is consistent with 31 U.S.C. 6302 and 6304.
    (n) Participant means a former member of the U.S. Armed Forces who 
was separated, retired, or discharged from the U.S. Armed Forces, or 
spouse of such former member, who receives services for which a VSTAGP 
grant is awarded.
    (o) Spouse means an individual lawfully married to a former member 
of the U.S. Armed Forces who was separated, retired, or discharged from 
the U.S. Armed Forces.
    (p) Covered public health emergency means an emergency with respect 
to COVID-19 declared by a Federal, State, or local authority in 
accordance with Public Law 117-4, sec. 2(e)(3).

(Authority: Pub. L. 116-315, sec. 4304)


Sec.  80.3  Grants--general.

    (a) Grants. VA will award VSTAGP grants to eligible applicants 
selected under Sec.  80.8(a)(1).
    (b) Maximum amounts. The maximum amount to be awarded to each 
grantee and the total maximum amount for all grants will be specified 
in the annually published NOFO.
    (c) Number of grants awarded. The number of grants VA will award 
will depend on the total amount of grant funding available at VA's 
discretion and the funding amount awarded to each grantee, which is 
based on each grantee's proposal.
    (d) Grant award limitation. An eligible entity may receive only one 
VSTAGP grant, and only one VSTAGP grant will be awarded in any one 
location as specified in the NOFO.
    (e) Period of performance. VSTAGP grants will be awarded for a 
maximum period of 5 years, beginning on the date on which the VSTAGP 
grants are awarded. They will not be extended or renewed.
    (f) Amount of grant. A grant under this section shall be in an 
amount that does not exceed 50% of the amount required by the 
organization to provide the services described in paragraph (b) of this 
section.
    (g) No participant charges. A grantee may not charge any 
participants a fee for services provided by the grantee or require any 
participants to participate in other activities sponsored by the 
grantee as a condition of receiving services for which the VSTAGP grant 
is made.

(Authority: Pub. L. 116-315, sec. 4304)

[[Page 42899]]

Sec.  80.4  Notice of Funding Opportunity (NOFO).

    When funds are available for VSTAGP grants, VA will publish a NOFO 
at Grants.gov (https://www.grants.gov). The NOFO will identify:
    (a) The location for obtaining VSTAGP grant applications, including 
the specific forms that will be required;
    (b) The date, time, and place for submitting completed VSTAGP grant 
applications;
    (c) Priority population categories;
    (d) The estimated total amount of funds available and the maximum 
funds available to a single grantee;
    (e) Matching funds requirements;
    (f) The minimum number of total points and points per category that 
an applicant must receive to be considered for a grant and information 
regarding the scoring process;
    (g) Any timeframes and manner for payments under the VSTAGP grant;
    (h) A description of eligible entities or other eligibility 
requirements necessary to receive the grant; and
    (i) Other information necessary for the VSTAGP grant application 
process, as determined by VA, including contact information for the 
office that will oversee the VSTAGP within VA.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.5  Applications.

    To apply for a grant, an eligible entity must submit a complete 
application package to VA, as described in the NOFO. Applications will 
be accepted only through www.grants.gov.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.6  Additional factors for selecting applications.

    (a) Applicant's performance on prior award. VA may consider the 
applicant's noncompliance with requirements applicable to prior VA or 
other agency awards as reflected in past written evaluation reports and 
memoranda on performance and the completeness of required prior 
submissions.
    (b) Applicant's fiscal integrity. Applicants must meet and maintain 
standards of fiscal integrity for participation in Federal grant 
programs as reflected in 2 CFR 200.205.
    (c) Priority preference. Priority preference will be given to 
organizations that either provide multiple forms of services or are 
located in a State with:
    (1) A high rate of unemployment among Veterans;
    (2) A high rate of usage of unemployment benefits for recently 
separated members of the Armed Forces; or
    (3) A labor force or economy that has been significantly impacted 
by a covered public health emergency.
    (d) Risk assessment evaluation. VA will conduct a formal 
assessment, prior to award, of the applicant's financial capability, 
adequacy of accounting system, and internal controls to assess the risk 
posed by each applicant.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.7  Scoring and selection.

    (a) Scoring. VA will only score complete applications received from 
eligible applicants by the deadline established in the NOFO. The 
applications must meet the minimum criteria set forth in the NOFO and 
will be scored as specified in the NOFO, as set forth in Sec.  80.4.
    (b) Selection of recipients. All complete applications will be 
scored using the criteria in paragraph (a) of this section and ranked 
in order of highest to lowest total score. NOFO announcements may also 
clarify the selection criteria in paragraph (a) of this section. The 
relative weight (point value) for each selection will be specified in 
the NOFO. VA will award VSTAGP grants on the primary basis of the 
scores but will also consider additional factors listed in Sec.  80.6.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.8  Disposition of applications.

    (a) Disposition of applications. Upon review of an application and 
dependent on the availability of funds, VA will:
    (1) Approve the application for funding, in whole or in part, for 
such amount of funds, and subject to such conditions that VA deems 
necessary or desirable;
    (2) Determine that the application is of acceptable quality for 
funding, in that it meets minimum criteria, but disapprove the 
application for funding because it does not rank sufficiently high in 
relation to other applications to qualify for an award based on the 
level of funding available, or for another reason as provided in the 
decision document; or
    (3) Defer action on the application for such reasons as lack of 
funds or a need for further review.
    (b) Notification of disposition. VA will notify the applicant in 
writing of the disposition of the application. A signed grant agreement 
form, as defined in Sec.  80.10, will be issued to the applicant of an 
approved application.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.9  Withdrawal of grant application.

    Applicants may withdraw a VSTAGP application submitted through 
Grants.gov by writing to the specified VA point of contact. An 
applicant may provide a rationale for the withdrawal request as 
specified in the NOFO.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.10  Grant agreement.

    (a) VA will draft a VSTAGP grant agreement to be executed by VA and 
the grantee.
    (b) The VSTAGP grant agreement will provide that the grantee agrees 
to, and will ensure that each subgrantee (if applicable) agrees to:
    (1) Operate the project in accordance with this part and the terms 
of the agreement.
    (2) Abide by the Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards under 2 CFR part 
200 and 2 CFR parts 25 and 170, if applicable.
    (3) Comply with such other terms and conditions, including 
recordkeeping and reports for project monitoring and evaluation 
purposes, as VA may establish for purposes of carrying out the VSTAGP 
effectively and efficiently and as described in the NOFO; and
    (4) Provide any necessary additional information requested by VA in 
the manner and timeframe specified by VA.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.11  Payments under the grant.

    (a) Payments. Grantees are to be paid in accordance with the 
timeframes and manner set forth in the NOFO.
    (b) Availability of grant funds. Federal financial assistance will 
become available subsequent to the effective date of the grant as set 
forth in the grant agreement. Recipients will not be reimbursed for 
costs resulting from obligations incurred before the effective date of 
the grant.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.12  Grantee reporting requirements.

    (a) Quarterly reports. All grantees must submit to VA quarterly 
reports, as required in the NOFO, within 30 days after the last day of 
each quarter based on the Federal fiscal year--with the first report 
due not later than 30 days after the last day of the quarter for which 
a grant is paid under this part--which includes the following 
information:
    (1) Record of time and resources expended in outreach activities 
and the methods used;

[[Page 42900]]

    (2) The number of participants served, including demographics of 
this population;
    (3) Types of assistance provided;
    (4) A full accounting of VSTAGP grant funds received from VA and 
used or unused funds during the quarter; and
    (5) Results of routine monitoring and any project variations.
    (b) Final report. Per 2 CFR 200.344, all grantees must submit to 
VA, not later than 120 days after the last day of the grant period (as 
defined in the NOFO) for which a grant is awarded under this part, a 
final report that meets the requirement set forth in the NOFO. The last 
quarterly performance and financial report received will be recorded as 
the final report. The financial report shall be noted as ``Final'' on 
the SF-425 Federal Financial Report.
    (c) Additional reports. VA may request additional reports to allow 
VA to assess project accountability and effectiveness. Grant recipients 
are encouraged to incorporate program evaluation activities from the 
outset of their program design and implementation to meaningfully 
document and measure their progress towards the outcomes proposed.
    (1) Title I of the Foundations for Evidence-Based Policymaking Act 
of 2018 (Evidence Act), Public Law 115-435 (2019) defines evaluation as 
``an assessment using systematic data collection and analysis of one or 
more programs, policies, and organizations intended to assess their 
effectiveness and efficiency.'' Evidence Act section 101 (codified at 5 
U.S.C. 311). Credible program evaluation activities are implemented 
with relevance and utility, rigor, independence and objectivity, 
transparency, and ethics (OMB Circular A-11, Part 6 Section 290).
    (2) Evaluation costs are allowable costs (either as direct or 
indirect), unless prohibited by statute or regulation, and such costs 
may include the personnel and equipment needed for data infrastructure 
and expertise in data analysis, performance, and evaluation. (2 CFR 
part 200).
    (3) In addition, recipients are required to participate in a VA-led 
evaluation if selected, which may be carried out by a third-party on 
behalf of VA. By accepting grant funds, recipients agree to participate 
in the evaluation.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.13  Termination of grant; recovery of funds.

    (a) Termination of grant. VA may terminate a grant agreement with 
any VSTAGP grantee that does not comply with the terms of the VSTAGP 
agreement.
    (b) Recovery of funds. VA may recover from the grantee any funds 
paid if the grantee violates the grant agreement or may recover any 
funds that have not been used in accordance with a VSTAGP grant 
agreement. If VA decides to recover funds, VA will issue the grantee a 
notice of intent to recover VSTAGP grant funds. The grantee will then 
have 30 days from the date of the notice to submit documentation 
demonstrating why the VSTAGP grant funds should not be recovered. If 
the VSTAGP grantee does not respond or if the grantee responds, but VA 
determines the documentation is insufficient to establish compliance, 
VA will make a final determination to recover the VSTAGP grant funds. 
If VA determines that the grantee did not violate the grant agreement, 
VA will make a final determination not to recover the grant funds.
    (c) Prohibition of further payment of grant funds. When VA 
determines that action will be taken to recover grant funds from a 
grantee, the grantee will be prohibited from receiving any further 
VSTAGP grant funds under this part until the grant funds are recovered 
and the condition that led to the recovery of the grant funds is 
resolved, unless the grant agreement has been terminated. If the grant 
agreement has been terminated, no future payments would be issued upon 
recovery.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.14  Compliance review requirements.

    (a) Site visits. VA may conduct, as needed, site visits to grantee 
locations to review grantee accomplishments and management control 
systems.
    (b) Inspections. VA may conduct, as needed, inspections of grantee 
records to determine compliance with the provisions of this part. All 
visits and evaluations will be performed with minimal disruption to the 
grantee to the extent practicable.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.203)


Sec.  80.15  Financial management.

    (a) Compliance. All recipients will comply with applicable 
requirements of the Single Audit Act Amendments of 1996, as implemented 
by 2 CFR part 200.
    (b) Financial Management. All grantees must use a financial 
management system that complies with 2 CFR part 200. Grantees must meet 
the applicable requirements of the Office of Management and Budget's 
regulations on Cost Principles at 2 CFR 200.400 through 200.475.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.400 through 
200.475)


Sec.  80.16  Recordkeeping.

    Grantees must ensure that records are maintained in accordance with 
2 CFR 200.337. Grantees must produce such records at VA's request.

(Authority: Pub. L. 116-315, sec. 4304; 2 CFR 200.337)


Sec.  80.17  Non-appealability of grant award decisions.

    Grant award decisions are discretionary and are not subject to 
appeal to any VA official or board.

[FR Doc. 2023-13819 Filed 7-3-23; 8:45 am]
BILLING CODE 8320-01-P