On April 22, 2024, the Office of Management and Budget (OMB) issued a final rule broadly
revising sections of OMB Guidance for Grants and Agreements,
following review and consideration of the comments received in
response to the proposed guidance published on October 5, 2023. The
effective date for the final rule is October 1, 2024, although
federal agencies may elect to apply it to federal awards issued as
early as June 21, 2024 (60 days from the date of publication of the
final rule).
OMB's final rule affects recipients and subrecipients of
federal financial assistance. The changes affect everything from
basic definitions of terms such as "federal financial
assistance," to the standard for mandatory disclosures, the
threshold for the disposition of equipment and supplies, audit
requirements, socioeconomic policies, prior approval requirements,
the treatment of indirect costs, and more.
