THE WHITE HOUSE
Office of the Press Secretary
________________________________________________________
For Immediate Release March 20, 2009
MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
SUBJECT: Ensuring Responsible Spending of Recovery Act Funds
My Administration is committed to
ensuring that public funds are expended responsibly and in a
transparent manner. Last month, I signed into law the "American
Recovery and Reinvestment Act of 2009," Public Law 111-5 (the "Recovery
Act" or "Act"), an investment package designed to provide a necessary
boost to our economy in these difficult times and to create jobs,
restore economic growth, and strengthen America's middle class. The
Recovery Act is designed to stimulate the economy through measures
that, among other things, modernize the Nation's infrastructure, jump
start American energy independence, expand high-quality educational
opportunities, preserve and improve access to affordable health care,
provide middle-class tax relief, and protect those in greatest need. It
is not intended to fund projects for special interests.
In implementing the Recovery Act, we
have undertaken unprecedented efforts to ensure the responsible
distribution of funds for the Act's purposes and to provide public
transparency and accountability of expenditures. We must not allow
Recovery Act funds to be distributed on the basis of factors other than
the merits of proposed projects or in response to improper influence or
pressure. We must also empower executive department and agency
officials to exercise their available discretion and judgment to help
ensure that Recovery Act funds are expended for projects that further
the job creation, economic recovery, and other purposes of the Recovery
Act and are not used for imprudent projects.
To these ends, I hereby direct that
for any further commitments, obligations, or expenditures of funds
under the Recovery Act, the head of each executive department or agency
shall immediately take all necessary steps, to the extent consistent
with the Act and other applicable law, to comply with this memorandum.
Section 1. Ensuring Merit-Based Decisionmaking for Grants and Other Forms of Federal Financial Assistance Under the Recovery Act. (a) Executive
departments and agencies shall develop transparent, merit-based
selection criteria that will guide their available discretion in
committing, obligating, or expending funds under the Recovery Act for
grants and other forms of Federal financial assistance. Such criteria
shall be consistent with legal requirements, may be tailored to the
particular funding activity, and shall be formulated to ensure that the
funding furthers the job creation, economic recovery, and other
purposes of the Recovery Act. To this end, merit-based selection
criteria shall be designed to support particular projects,
applications, or applicants for funding that have, to the greatest
extent, a demonstrated or potential ability to: (i) deliver
programmatic results; (ii) achieve economic stimulus by optimizing
economic activity and the number of jobs created or saved in relation
to the Federal dollars obligated; (iii) achieve long-term public
benefits by, for example, investing in technological advances in
science and health to increase economic efficiency and improve quality
of life; investing in transportation, environmental protection, and
other infrastructure that will provide long-term economic benefits;
fostering energy independence; or improving educational quality; and
(iv) satisfy the Recovery Act's transparency and accountability
objectives.
(b) No
considerations contained in oral or written communications from any
person or entity concerning particular projects, applications, or
applicants for funding shall supersede or supplant consideration by
executive departments and agencies of such projects, applications, or
applicants for funding pursuant to applicable merit-based criteria.
Sec. 2. Avoiding Funding of Imprudent Projects. (a) Funds
under the Recovery Act shall not be committed, obligated, or expended
by any executive department or agency, and shall not be used by any
State or local governmental or private grantee or awardee, to support
projects of the type described in section 1604 of Division A of the
Recovery Act, which states that "[n]one of the funds appropriated or
otherwise made available in this Act may be used by any State or local
government, or any private entity, for any casino or other gambling
establishment, aquarium, zoo, golf course, or swimming pool."
(b) In
exercising their available discretion to commit, obligate, or expend
funds under the Recovery Act for grants and other forms of Federal
financial assistance, executive departments and agencies, to the extent
permitted by law, shall not approve or otherwise support funding for
projects that are similar to those described in section 1604 of
Division A of the Recovery Act.
(c) In
exercising their available discretion to commit, obligate, or expend
funds under the Recovery Act for grants and other forms of Federal
financial assistance, executive departments and agencies, to the extent
permitted by law, shall not approve or otherwise support any project,
application, or applicant for funding that is imprudent or that does
not further the job creation, economic recovery, and other purposes of
the Act. To this end, executive departments and agencies shall exercise
their available discretion to decline approving or otherwise supporting
particular projects, applications, or applicants for funding unless the
department or agency has affirmatively determined, in advance, that the
project, application, or applicant has a demonstrated or potential
ability to: (i) deliver programmatic results; (ii) achieve economic
stimulus by optimizing economic activity and the number of jobs created
or saved in relation to the Federal dollars obligated; (iii) achieve
long-term public benefits by, for example, investing in technological
advances in science and health to increase economic efficiency and
improve quality of life; investing in transportation, environmental
protection, and other infrastructure that will provide long-term
economic benefits; fostering energy independence; or improving
educational quality; or (iv) satisfy the Recovery Act's transparency
and accountability objectives.
(d) Where
executive departments or agencies lack discretion under the Recovery
Act to refuse funding for projects similar to those described in
section 1604 of Division A of the Act, or other projects that the
executive department or agency deems imprudent or as not furthering the
job creation, economic recovery, or other purposes of the Act, the
department or agency shall consult immediately with the Office of
Management and Budget (OMB) about the project and its funding
requirements. Where legally permissible, the department or agency shall:
(i) delay
funding of the project for 30 days, or the longest period permitted by
law if less than 30 days, in order to ensure adequate opportunity for
public scrutiny of the project prior to commitment of funds; and
(ii)
publish a description of the proposed project (or project plan) and its
funding requirements on the agency's recovery website as soon as
practicable before or after commitment, obligation, or expenditure of
funds for the project.
(e) Executive
departments and agencies, including their respective Offices of
Inspector General, shall monitor compliance with the prohibition in
section 1604 of Division A of the Recovery Act, referenced in
paragraph (a) above, by contractors, grantees, and other recipients of
Federal financial assistance (recipients). If a department or agency
believes that a recipient has not complied with section 1604, then the
department or agency shall (i) promptly notify the Recovery
Accountability and Transparency Board; and (ii) take appropriate
corrective action that may include, but not be limited to, disallowing
or otherwise recovering improperly spent amounts, imposing additional
requirements on the recipient to ensure compliance with section 1604
(and other applicable prohibitions and obligations), initiating
a proceeding for administrative civil penalties, and initiating a
proceeding for suspension and debarment.
Sec. 3. Ensuring Transparency of Registered Lobbyist Communications. (a) An
executive department or agency official shall not consider the view of
a lobbyist registered under the Lobbying Disclosure Act of 1995,
2 U.S.C. 1601 et seq.,
concerning particular projects, applications, or applicants for funding under the Recovery Act unless such views are in writing.
(b) Upon the
scheduling of, and again at the outset of, any oral communication
(in-person or telephonic) with any person or entity concerning
particular projects, applications, or applicants for funding under the
Recovery Act, an executive department or agency official shall inquire
whether any of the individuals or parties appearing or communicating
concerning such particular project, application, or applicant is a
lobbyist registered under the Lobbying Disclosure Act of 1995. If so,
the lobbyist may not attend or participate in the telephonic or
in-person contact, but may submit a communication in writing.
(c) All
written communications from a registered lobbyist concerning the
commitment, obligation, or expenditure of funds under the Recovery Act
for particular projects, applications, or applicants shall be posted
publicly by the receiving agency or governmental entity on its recovery
website within 3 business days after receipt of such communication.
(d) An
executive department or agency official may communicate orally with
registered lobbyists concerning general Recovery Act policy issues;
provided, however, that such oral communications shall not extend to or
touch upon particular projects, applications, or applicants for
funding, and further that the official must contemporaneously or
immediately thereafter document in writing: (i) the date and time of
the contact on policy issues; (ii) the names of the registered
lobbyists and the official(s) between whom the contact took place; and
(iii) a short description of the substance of the communication. This
writing must be posted publicly by the executive department or agency
on its recovery website within 3 business days of the communication.
(e) Upon the
scheduling of, and again at the outset of, any oral communications with
any person or entity concerning general Recovery Act policy issues, an
executive department or agency official shall inquire whether any of
the individuals or parties appearing or communicating concerning such
issues is a lobbyist registered under the Lobbying Disclosure Act. If
so, the official shall comply with paragraph (d) above.
Sec. 4. General Provisions. (a) The
Director of OMB shall assist and, as appropriate, issue guidance to the
heads of executive departments and agencies to carry out their
responsibilities under this memorandum. Within 60 days of the date of
this memorandum, the Director of OMB shall review the implementation of
this memorandum by executive departments and agencies and shall forward
to me any recommendations for modifications or revisions to this
memorandum.
(b) This memorandum does not apply to tax-related provisions in Division B of the Recovery Act.
(c) Nothing
in this memorandum shall be construed to impair or otherwise
affect: (i) authority granted by law or Executive Order to an executive
department, agency, or the head thereof; or (ii) functions of the
Director of OMB relating to budgetary, administrative, or legislative
proposals.
(d) This
memorandum shall be implemented consistent with applicable law and all
OMB implementing guidance, and shall be subject to the availability
of appropriations.
(e) This
memorandum is not intended to, and does not, create any right or
benefit, substantive or procedural, enforceable at law or in equity by
any party against the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any other person.
Sec. 5. Publication. The Director of OMB is hereby authorized and directed to publish this memorandum in the Federal Register.
BARACK OBAMA
