Extension Likely for Public Health Emergency, M-21-20 Flexibilities

By reading between the lines, it’s pretty much assured that the COVID-19 public health emergency, which is currently in place until July 15, will be extended, and thus, federal awarding agencies may continue to opt to allow certain waivers of federal grant requirements allowed under Office of Management and Budget Memorandum M-21-20.

The Department of Health and Human Services (HHS) recently sent a letter to state governors addressing tools pertaining to the Medicaid program and Children’s Health Insurance Program that states can use when they return to regular operations when the public health emergency eventually ends and states resume making normal eligibility determinations. However, within the letter, there is an implication that lets us know that the public health emergency will not end on July 15.

The letter states that “the Biden-Harris Administration is committed to providing you with at least 60-days’ notice before any expiration or termination of the public health emergency.” Considering July 15 is less than 60 days away and states have not received notices of such expiration date, one should assume that the public health emergency will be extended yet again.

Because several of the administrative relief options that agencies may provide under M-21-20 are dependent on the public health emergency date, this expected extension would allow those flexibilities and waivers to continue. Thompson Grants addressed the flexibilities still available in an article here. Among these include waivers from prior approval requirements, exemptions from certain procurement requirements and an extension of closeouts.

In a related note pertaining to these flexibilities, the Office of Head Start (OHS) within HHS’ Administration for Children and Families recently corrected its previous guidance (ACF-IM-HS-21-01) to note that the following waivers are in effect until M-21-20 expires or is rescinded.

• Prior approval for the purchase of equipment (45 C.F.R. §75.308(c)(1)(xi)). Head Start grantees may purchase equipment needed to respond to COVID-19 with a value of up to $25,000 without prior ACF approval.
• Budget modifications (45 C.F.R. §75.308(e)). To allow Head Start grantees more flexibility to spend funds as needed to respond to COVID-19 and, when possible, quickly move to reopen closed centers, prior approval is waived for budget transfers between direct cost categories for an aggregate amount not to exceed $1 million.
• Procurement by noncompetitive proposals (45 C.F.R. §75.329(f)(2)). OHS is authorizing grantees to engage in sole-source purchasing to obtain goods and services needed for COVID-19 response and recovery.

In a perfect world, the public health emergency would have ended a long time ago. Still, at least agencies are recognizing the disruptions grantees are facing due to COVID-19.

Join us for our following Thompson Grants events:
Federal Grants Forum | June 15-17, 2022 | Denver, Colo.
Federal Grants Forum For Institutions of Higher Education | Sept. 28-29, 2022 | Virtual Event