This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

79731 

Vol. 89, No. 190 

Tuesday, October 1, 2024 

OFFICE OF MANAGEMENT AND 

BUDGET 

2 CFR Parts 170, 184, and 200 

Guidance for Federal Financial 

Assistance; Corrections 

AGENCY: Office of Federal Financial 

Management, Office of Management and 

Budget. 

ACTION: Final rule; correction and 

correcting amendments. 

SUMMARY: The Office of Management 

and Budget (OMB) is correcting the final 

guidance that appeared in the Federal 

Register on April 22, 2024. This 

document reverses a change to a title 

heading and makes technical 

amendments clarifying specific 

language in three parts. 

DATES: Effective on October 1, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Steven Mackey or Andrew Reisig at the 

OMB Office of Federal Financial 

Management at MBX.OMB.Grants@

OMB.eop.gov or 202–395–3993. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the revisions to OMB’s 

Guidance for Federal financial 

assistance published April 22, 2024 (89 

FR 30046). 

Section-by-Section Discussion 

Title 2—Grants and Agreements 

In the document published by OMB 

in the Federal Register in April, 

instruction 1 at 89 FR 30107 attempted 

to change the heading of title 2 from 

‘‘Grants and Agreements’’ to ‘‘Federal 

Financial Assistance.’’ However, unlike 

chapters, subchapters, and parts, which 

are under the direct control of an agency 

(1 CFR 21.8), each CFR title is arranged 

by subject matter and only the Director 

of the Federal Register can establish 

new or update existing titles (1 CFR 

8.2). Therefore, instead of directly 

changing the heading and subject matter 

of title 2, the Director of OMB has 

communicated the request to change the 

heading of title 2 to the Director of the 

Federal Register. 

Subtitle A of title 2 has been 

specifically assigned to OMB, so, in this 

case, the subtitle heading is treated as 

an OMB chapter or part heading. 

Therefore, instructions 2 and 4 in 

OMB’s April document are both 

acceptable instructions, which will be 

implemented. 

Appendix A to Part 170—Award Term 

In paragraph I(a)(2)(i) of appendix A 

to 2 CFR part 170, OMB mistakenly 

stated that the ‘‘entity or Federal 

agency’’ must report subawards 

described in paragraph (a)(1) of the 

award term to the Federal Funding 

Accountability and Transparency Act 

Subaward Reporting System (FSRS). 

OMB intended to state that the 

‘‘recipient’’ is responsible for such 

reporting to FSRS. The technical 

correction is consistent with the prior 

version of the award term in appendix 

A to 2 CFR part 170, which is directed 

at recipients—but refers to them 

throughout as ‘‘you.’’ In the revised 

version of the award term, OMB 

generally replaced the word ‘‘you’’ with 

‘‘recipient’’ throughout for greater 

clarity, but inadvertently included the 

wrong terms in this particular instance. 

Consistent with 2 CFR 170.220(a), the 

award term is directed at recipients, and 

recipients are responsible for reporting 

subawards in FSRS. Thus, through this 

document, OMB replaced ‘‘entity or 

Federal agency’’ with ‘‘recipient’’ in 

paragraph (a)(1) of the award term. 

Section 184.3—Definitions 

(Introductory Text) 

In the introductory text for the 

definitions in part 184, which 

implements the Build America, Buy 

America Act (BABA), Public Law 117– 

58, OMB incorporated the meanings of 

acronyms and definitions from 2 CFR 

200.0 and 200.1. 88 FR 57750, 57788. 

OMB did this to incorporate the 

meanings of terms such as ‘‘Federal 

award,’’ ‘‘subaward,’’ ‘‘Federal 

agencies,’’ ‘‘recipient,’’ and others, 

which are used in the same way in both 

parts 184 and 200. However, the 

document published by OMB in the 

Federal Register in April 2024 revising 

part 200 adjusted the meanings and 

thresholds for the terms ‘‘equipment’’ 

and ‘‘supply,’’ which OMB does not 

intend to apply under part 184. 89 FR 

30046, 30139–44. OMB has amended 

the introductory text before the 

definitions in § 184.3 to clarify that the 

definitions of ‘‘equipment’’ and 

‘‘supply’’ are not incorporated under 

part 184. 

Based on the use of ‘‘expenditures’’ at 

§ 184.8 (Exemptions to the Buy America 

Preference), OMB has also amended the 

introductory text to exclude the 

definition of ‘‘expenditures’’ from part 

200. The use of that term in § 184.8 (i.e., 

‘‘expenditures for assistance’’) refers to 

expenditures of funds by a Federal 

agency ‘‘for assistance,’’ as opposed to 

the definition in § 200.1, which refers to 

expenditures ‘‘by a recipient or 

subrecipient to a project or program for 

which a Federal award is received.’’ 89 

FR 30046, 30139. 

OMB is not providing revised 

definitions of the terms ‘‘equipment,’’ 

‘‘supply,’’ or ‘‘expenditure’’ through this 

document, but merely clarifying that the 

definitions from § 200.1 do not apply 

under part 184. 

Section 200.1—Definitions 

In the document published by OMB 

in the Federal Register in August 2023 

establishing 2 CFR part 184, which 

implements BABA, Public Law 117–58, 

OMB explained how the term Federal 

financial assistance, as defined at 2 CFR 

200.1, should be applied under part 184. 

88 FR 57750, 57774. The preamble 

explained that, through issuance of the 

final guidance, OMB did not modify the 

existing guidance in M–22–11 on the 

proper application of that term for the 

purposes of BABA. Specifically, OMB 

explained that the existing guidance in 

OMB Memorandum M–22–11 was based 

on the definition of Federal financial 

assistance at section 70912(4)(A) of 

BABA, providing that the term has the 

meaning given in ‘‘section 200.1 of title 

2, Code of Federal Regulations (or 

successor regulations).’’ Based on 

certain forms of assistance listed in 

section 200.1, Memorandum M–22–11 

established the policy that, for the 

purposes of BABA, Federal financial 

assistance means ‘‘assistance that nonFederal entities receive or administer in 

the form of grants, cooperative 

agreements, non-cash contributions or 

donations of property, direct assistance, 

loans, loan guarantees, and other types 

of financial assistance.’’ (Emphasis 

added) Section 70912(4)(B) of BABA 

also provides that the term Federal 

financial assistance includes, but is not 


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79732 Federal Register / Vol. 89, No. 190 / Tuesday, October 1, 2024 / Rules and Regulations 

limited to, all expenditures ‘‘by a 

Federal agency to a non-Federal entity 

[for assistance] for an infrastructure 

project,’’ except that it does not include 

certain specified expenditures relating 

to a major disaster or emergency. Based 

on the policy in Memorandum M–22– 

11, which applied BABA to loans and 

loan guarantees, the part 184 preamble 

explained how the definition from 

BABA 70912(4)(A) and 2 CFR 200.1 

should be applied for the purposes of 

part 184. 88 FR 57750, 57774. 

OMB subsequently rescinded and 

replaced Memorandum M–22–11 on 

October 25, 2023, by issuing 

Memorandum M–24–02. Memorandum 

M–24–02 continues to provide that, for 

the purposes of BABA, Federal financial 

assistance means ‘‘assistance that nonFederal entities receive or administer in 

the form of grants, cooperative 

agreements, non-cash contributions or 

donations of property, direct assistance, 

loans, loan guarantees, and other types 

of financial assistance.’’ 

To clarify how the term ‘‘Federal 

financial assistance’’ is applied for 

purposes of BABA under part 184, OMB 

has added a new paragraph to the 

definition at § 200.1 specifically 

addressing this topic based on the part 

184 preamble and associated OMB 

guidance memoranda. This revision is 

intended to reduce any ambiguity in the 

2 CFR text on which forms of Federal 

financial assistance are included for 

purposes of part 184. The revision is 

consistent with OMB’s existing policy 

with respect to BABA applicability to 

loans and loan guarantees, which is 

reflected in the part 184 preamble and 

associated policy memoranda. 

Section 200.431—Compensation— 

Fringe Benefits 

In the document published by OMB 

in the Federal Register in April, OMB 

explained in the preamble at 89 FR 

30095 that, in the proposed guidance, 

‘‘OMB proposed revising section 

200.431 on fringe benefits to require 

recipients and subrecipients to allocate 

payments for unused leave as general 

administrative expenses or include 

them in a fringe benefit rate with 

cognizant agency approval.’’ In its 

response to comments at 89 FR 30095, 

OMB stated that it revised paragraph 

(b)(3)(i) of § 200.431 ‘‘to remove the 

requirement that agencies must include 

certain costs in fringe benefit rates only 

with the approval of the cognizant 

agency for indirect costs.’’ (Emphasis 

added) OMB explained that it made this 

change in recognition ‘‘that some 

recipients might not have a cognizant 

agency for indirect costs.’’ However, in 

removing the requirement to obtain 

cognizant agency approval, OMB also 

inadvertently removed the option to 

include these payments in a fringe 

benefit rate under any circumstances, 

which—as the preamble text reflected— 

was not its intent. Thus, through this 

document, OMB inserted the following 

text at the end of paragraph (b)(3)(i) of 

§ 200.431: ‘‘or included in the fringe 

benefit rate.’’ 

In addition, OMB further revised 

paragraph (b)(3)(i) of § 200.431 through 

this document to replace the word 

‘‘must’’ with ‘‘should’’ in the instruction 

to either allocate these payments for 

unused leave as a general administrative 

expense to all activities or include them 

in fringe benefit rates. This revision is 

consistent with prior OMB guidance on 

this topic in the ‘‘2 CFR Frequently 

Asked Questions’’ (2 CFR FAQ) 

published on May 3, 2021, which was 

a source of the text at paragraph (b)(3)(i) 

of § 200.431. See 2 CFR FAQ, at Q–104. 

All payments for unused leave must still 

be allocated in accordance with the cost 

principles in subpart E. See, e.g., 2 CFR 

200.401(a). Paragraph (b)(3)(i), as 

revised, continues to describe the two 

options that will generally be used for 

these types of payments under subpart 

E. 

Correction to Final Rule Published 

April 2024 

In FR Doc. 2024–07496, appearing at 

89 FR 30046 in the Federal Register of 

April 22, 2024, on page 30108, in the 

first column, remove instruction 1 for 

title 2. 

List of Subjects 

2 CFR Part 170 

Colleges and universities, Grant 

programs, Hospitals, International 

organizations, Loan programs, Reporting 

and recordkeeping requirements. 

2 CFR Parts 184 and 200 

Administration of Federal financial 

assistance, Administrative practice and 

procedure, Federal financial assistance 

programs. 

For the reasons stated in the 

preamble, the Office of Management and 

Budget corrects 2 CFR chapters I and II 

by making the following correcting 

amendments: 

PART 170—REPORTING SUBAWARD 

AND EXECUTIVE COMPENSATION 

INFORMATION 

■ 1. The authority citation for part 170 

continues to read as follows: 

Authority: 31 U.S.C. 503; 31 U.S.C. 6102; 

31 U.S.C. 6307; Pub. L. 109–282; Pub. L. 110– 

252, Pub. L. 113–101, Pub. L. 117–40. 

Appendix A to part 170 [Amended] 

■ 2. In appendix A to part 170, amend 

paragraph I(a)(2)(i) by removing the 

words ‘‘entity or Federal agency’’ and 

adding, in their place, the word 

‘‘recipient’’. 

PART 184—BUY AMERICA 

PREFERENCES FOR 

INFRASTRUCTURE PROJECTS 

■ 3. The authority citation for part 184 

continues to read as follows: 

Authority: Pub. L. 117–58, 135 Stat. 429. 

■ 4. In § 184.3, revise the introductory 

text to read as follows: 

§ 184.3 Definitions. 

Acronyms used in this part have the 

same meaning as provided in 2 CFR 

200.0. Terms not defined in this part 

have the same meaning as provided in 

2 CFR 200.1, except for the terms 

‘‘equipment,’’ ‘‘expenditures,’’ and 

‘‘supplies,’’ which are not specifically 

defined for this part. As used in this 

part: 

* * * * * 

PART 200—UNIFORM 

ADMINISTRATIVE REQUIREMENTS, 

COST PRINCIPLES, AND AUDIT 

REQUIREMENTS FOR FEDERAL 

AWARDS 

■ 5. The authority citation for part 200 

continues to read as follows: 

Authority: 31 U.S.C. 503; 31 U.S.C. 6101– 

6106; 31 U.S.C. 6307; 31 U.S.C. 7501–7507. 

■ 6. In § 200.1, in the definition of 

‘‘Federal financial assistance,’’ add 

paragraph (5) to read as follows: 

§ 200.1 Definitions. 

* * * * * 

Federal financial assistance * * * 

(5) For part 184 of this title, in 

addition to the forms of assistance listed 

in paragraph (1) of this definition, 

Federal financial assistance also 

includes assistance that recipients or 

subrecipients receive or administer in 

the form of: 

(i) Loans; and 

(ii) Loan Guarantees. 

* * * * * 

■ 7. In § 200.431, revise paragraph 

(b)(3)(i) to read as follows: 

§ 200.431 Compensation—fringe benefits. 

* * * * * 

(b) * * * 

(3) * * * 

(i) When a recipient or subrecipient 

uses the cash basis of accounting, the 

cost of leave is recognized in the period 

that the leave is taken and paid for. 

Payments for unused leave when an 


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Federal Register / Vol. 89, No. 190 / Tuesday, October 1, 2024 / Rules and Regulations 79733 

1https://acir.aphis.usda.gov/s/. 

2 Information Services and Manuals Unit, 4700 

River Road, Riverdale, MD 20737. 

employee retires or terminates 

employment are allowable in the year of 

payment and should be allocated as a 

general administrative expense to all 

activities or included in the fringe 

benefit rate. 

* * * * * 

Deidre A. Harrison, 

Deputy Controller, performing the delegated 

duties of the Controller Office of Federal 

Financial Management. 

[FR Doc. 2024–22520 Filed 9–26–24; 4:15 pm] 

BILLING CODE 3110–01–P 

DEPARTMENT OF AGRICULTURE 

Animal and Plant Health Inspection 

Service 

7 CFR Parts 305 and 319 

[Docket No. APHIS–2024–0034] 

Web Links for Plant Commodity Import 

Requirements 

AGENCY: Animal and Plant Health 

Inspection Service, USDA. 

ACTION: Final rule. 

SUMMARY: We are revising the 

phytosanitary treatment and quarantine 

import regulations to reflect our 

relocation of import and treatment 

requirements for agricultural 

commodities to the Agricultural 

Commodity Import Requirements online 

database. This change will ensure that 

the regulations provide the latest web 

links for accessing current import and 

treatment requirements for all 

agricultural commodities. 

DATES: Effective October 1, 2024. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jenna Edwards, Assistant Director, 

Information Services and Manuals Unit, 

PPQ–PEIP–IRM, APHIS, 4700 River 

Road, Riverdale, MD 20737–1231; (970) 

305–2501; jennifer.m.edwards@

usda.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The regulations in 7 CFR part 305, 

‘‘Phytosanitary Treatments,’’ set out 

phytosanitary treatment requirements 

for certain plants, fruits, vegetables, and 

other articles before they may be 

imported or moved interstate to prevent 

the spread of agricultural pests into or 

within the United States. In 7 CFR part 

319, subpart H, §§ 319.37–1 through 

319.37–23, sets out requirements for 

importation of live plants intended to be 

planted or replanted. Subpart L, 

§§ 319.56–1 through 319.56–12, 

provides requirements for importation 

of fruits and vegetables into the United 

States. 

The Animal and Plant Health 

Inspection Service (APHIS) maintains a 

publicly searchable database, 

‘‘Agricultural Commodity Import 

Requirements,’’ or ACIR,1 that allows 

users to find import and treatment 

requirements for all agricultural 

commodities. APHIS intends ACIR 

eventually to be the official location for 

import and treatment requirements for 

all agricultural commodities. 

Prior to development of the ACIR 

database, APHIS’ Plant Protection and 

Quarantine (PPQ) import and treatment 

requirements were maintained across 

several manuals and the Fruits and 

Vegetables Import Requirements 

(FAVIR) database. In September 2022, 

FAVIR was retired and all information 

about specific fruit and vegetable import 

requirements were relocated to ACIR. 

PPQ import requirements for cut flowers 

and greenery, seeds not for planting, 

miscellaneous and processed products, 

and later in 2022, plants for planting, 

were also relocated from their respective 

manuals to ACIR. In early 2023, 

treatment schedules and other 

information from the PPQ Treatment 

Manual were relocated to ACIR. 

Parts 305 and 319 of the current 

regulations contain web links to FAVIR, 

PPQ’s Plants for Planting Manual, and 

the PPQ Treatment Manual. These links 

either redirect persons to the ACIR 

database or to manuals that are no 

longer to be updated, as the information 

in these sources has been moved to 

ACIR. In order to provide updated web 

links to direct readers to the ACIR 

database, it is necessary to amend the 

regulations through rulemaking. 

In § 305.1, the definition of PPQ 

Treatment Manual contains a link that 

currently directs readers to the manual. 

We are removing that web link and 

replacing it with one that links directly 

to the treatments section within ACIR. 

We are also amending the definition by 

removing the current mailing address 

for requesting a hard copy of the PPQ 

Treatment Manual and adding an 

updated mailing address.2 In 

accordance with our legal obligations, 

we maintain this service for persons 

who may not have access to the internet. 

We are also amending § 319.5(c) by 

removing ‘‘Commodity Import Analysis 

and Operations’’ from the address to 

which information about export 

commodities is to be sent. This 

amendment reflects an internal 

administrative change. 

In § 319.37–2, we are revising the 

definition of Plants for Planting Manual 

by replacing the web link currently in 

the definition with one that links 

directly to the plants for planting 

section of the ACIR database. We are 

also updating the mailing address in the 

definition for persons requesting a hard 

copy of the manual. 

As noted above, the import 

requirements for fruits and vegetables 

have been moved from FAVIR to ACIR. 

Accordingly, we are updating § 319.56– 

4(c)(1) by replacing the current web link 

with a link directly to the ACIR 

database. 

Effective Date 

This rule updates APHIS’ regulations 

in order to ensure that references to 

manuals, web addresses, postal 

addresses, and nomenclature are 

accurate. Therefore, APHIS considers 

there to be good cause pursuant to 5 

U.S.C. 553 to find that an opportunity 

for public comment is unnecessary and 

contrary to the public interest, and this 

rule may be made effective less than 30 

days after publication in the Federal 

Register. Further, since this rule ensures 

that regulations will refer to the correct 

web addresses and postal addresses 

used by the Agency, APHIS considers 

the rule to relate to internal agency 

management within the U.S. 

Department of Agriculture, and it is, 

accordingly, exempt from the provisions 

of Executive Orders 12866 and 12988. 

Finally, this action is not a rule as 

defined by the Regulatory Flexibility 

Act (5 U.S.C. 501), and as such is 

exempt from the provisions of that Act. 

Executive Order 12372 

This program/activity is listed in the 

Catalog of Federal Domestic Assistance 

under No. 10.025 and is subject to 

Executive Order 12372, which requires 

intergovernmental consultation with 

State and local officials. (See 2 CFR 

chapter IV.) 

Paperwork Reduction Act 

This rule contains no reporting or 

recordkeeping requirements under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501 et seq.). 

Lists of Subjects 

7 CFR Part 305 

Agricultural commodities, Imports, 

Plant diseases and pests, Quarantine, 

Reporting and recordkeeping 

requirements, Transportation. 

7 CFR Part 319 

Coffee, Cotton, Fruits, Honey, 

Imports, Nursery stock, Plant diseases 

and pests, Plants, Quarantine, Reporting 


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