White House Calls for Lobbying Review, Funding Rescissions
Looking at today’s Federal Register, one will find that the White House is strong-arming its presence over grants again. These actions come in the form of an administrative action and a funding rescissions notice.
President Trump issued an administrative memorandum entitled “Illegal Lobbying and Partisan Political Activity; Use of Appropriated Funds by Federal Grantees,” in which he states that some federal grants, “in addition to being a wasteful, abusive and potentially fraudulent use of the American people's money,” potentially could be being used as “slush funds for political and legislative advocacy.” Noting that federal law places strict limitations on the use of federal grant funds for lobbing (see ¶516 in Thompson Grants’ Federal Grants Management Module), and that the president deems it his “duty to take care that the laws are faithfully executed,” Trump has directed the Attorney General, in consultation with the heads of executive departments and agencies, to investigate whether federal grant funds are being used to illegally support lobbying activities and to take appropriate enforcement action. He is requiring the Attorney General to report on the progress his investigation within 180 days of Aug. 28.
As we’ve reported before, this is just more federal internal actions to slow down or threaten federal funding going to recipients for worthwhile programs nationwide.
Also from the White House Office of Management and Budget (OMB), today’s Federal Register includes a notice of rescissions proposed pursuant to the Congressional Budget and Impoundment Control Act of 1974. This notice reflects proposed foreign aid rescissions sent to Congress for consideration on Aug. 28 totaling some $4.9 billion in budget authority. These proposed rescissions affect programs of the Department of State as well as the U.S. Agency for International Development (USAID) and International Assistance Programs. The White House states that if the rescissions are enacted, “it would have a commensurate effect on the federal budget deficit and the national economy, and would result in less borrowing from the federal Treasury.”
The proposed rescissions do not meet the president’s priorities. For example, OMB is proposing to rescind $188 million of the $340 million appropriated in federal fiscal year 2024 for the Department of State’s Democracy Fund (DF), which funds democracy promotion activities of the Department of State and USAID. The White House contends that DF-funded activities “weaponized programs that undermine American values, weaken perception of America abroad, interfere with the sovereignty of other countries, including U.S. allies, and bankroll the evasion by corrupt leaders of their responsibilities to their citizens.” The administration criticized it for funding gender responsive governance and activities geared toward strengthening information integrity, equality, and democracy for LGBTQI+ populations. Other funding was cut because the funding supported “green economic opportunities,” which again does not align with the president’s priorities.
Thompson Grants will continue to follow all actions taken on the federal level to keep you aware of how they can affect your federal financial assistance. Now is the time to stay current on the ever-changing landscape of grants.
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