II 

117TH CONGRESS 

1ST SESSION S. 2056 

To require agencies to notify the Director of the Office of Management 

and Budget when the agency suspends or terminates a Federal award, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 15, 2021 

Ms. ERNST introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To require agencies to notify the Director of the Office 

of Management and Budget when the agency suspends 

or terminates a Federal award, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stop the Outlay of 

5 Payments Act’’. 

6 SEC. 2. FEDERAL GRANTS. 

7 (a) DEFINITIONS.—In this section: 

8 (1) AGENCY.—The term ‘‘agency’’ means— 


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1 (A) an Executive agency, as defined in sec2 tion 105 of title 5, United States Code; and 

3 (B) an independent regulatory agency, as 

4 defined in section 3502 of title 44, United 

5 States Code. 

6 (2) DIRECTOR.—The term ‘‘Director’’ means 

7 the Director of the Office of Management and Budg8 et. 

9 (3) FEDERAL AWARD.—The term ‘‘Federal 

10 award’’ means a grant, subgrant, contract, sub11 contract, loan, award, or cooperative agreement 

12 awarded by an agency. 

13 (4) SUSPENDED ENTITY.—The term ‘‘sus14 pended entity’’ means a recipient of a Federal 

15 award, any portion of which the head of an agency 

16 suspends or terminates for a reason described in 

17 subsection (b)(2). 

18 (b) NOTIFICATION.— 

19 (1) IN GENERAL.—Not later than 120 days 

20 after the date on which an agency suspends or ter21 minates any portion of a Federal award to the re22 cipient of the Federal award for a reason described 

23 in paragraph (2), the head of an agency shall notify 

24 the Director of the suspension or termination. 


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1 (2) REASON FOR SUSPENSION OR TERMI2 NATION.—A reason for a suspension or termination 

3 of a Federal award described in this paragraph is a 

4 failure of the recipient of the Federal award to com5 ply with— 

6 (A) the terms and conditions of the Fed7 eral award; 

8 (B) a Federal law or regulation; or 

9 (C) a request by the agency awarding the 

10 Federal award for information or materials re11 lating to the Federal award. 

12 (3) LIST OF SUSPENSIONS.—The Director shall 

13 maintain an up-to-date list of suspended entities on 

14 the website of the Office of Management and Budg15 et. 

16 (c) EFFECT ON OTHER GRANTS.— 

17 (1) IN GENERAL.—Subject to paragraph (2), 

18 the head of an agency may not award a Federal 

19 award or disburse funds under a Federal award to 

20 a suspended entity until the date on which the sus21 pended entity remedies the reason for a suspension 

22 or termination of a Federal award of the suspended 

23 entity under subsection (b)(2). 


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1 (2) EXCEPTIONS.—The head of an agency may 

2 award a Federal award and disburse funds under a 

3 Federal award to a suspended entity if— 

4 (A) the suspended entity has been classi5 fied as a suspended entity as a result of a cler6 ical error; or 

7 (B) the suspended entity has an agreement 

8 with the agency that suspends or terminates the 

9 Federal award of the suspended entity to re10 solve the reason for the suspension or termi11 nation described in subsection (b)(2). 

12 (3) COMPLIANCE.—For the purpose of com13 plying with paragraph (1), the head of an agency 

14 shall reference the list of suspended entities main15 tained by the Director under subsection (b)(3). 

Æ 


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