GAO Views on H.R. 3943

GAO presented comments on H.R. 3943, 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. GAO has been monitoring the implementation of the Act and stated that, although some progress has been made, it has found that a substantial number of program officials are not familiar with the Act. GAO found that OMB has used its authority judiciously. Exceptions have been granted only for the general revenue sharing and counter-cyclical aid programs and for nonmonetary grants. GAO believes that continuing the exception authority will provide ancillary benefits. Therefore, GAO recommended that Congress extend, without time limit, the OMB exception authority.