Comments on H.R. 3943

Legislation has been proposed which would extend the authority of the Office of Management and Budget (OMB) to except transactions and programs from provisions of the Federal Grant and Cooperative Agreement Act. In a review of Federal agencies' efforts to implement the Act, GAO found that, although some progress has been made, a substantial number of program officials are not familiar with the Act. Many officials are having difficulty applying its provisions and the OMB implementing guidance. GAO supports this legislation and has recommended that Congress renew the OMB exception authority without a time limit. The exception authority was meant to serve as an escape valve to avoid unintended consequences in implementing the Act. Since the Act has not yet been implemented for a great many programs, additional cases may arise for which availability of the authority would be useful.