`[Federal Register Volume 89, Number 250 (Tuesday, December 31, 2024)]
[Rules and Regulations]
[Pages 107001-107003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31230]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 38

RIN 2900-AS13


Veterans Legacy Grants Program Improvements

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) amends its Veterans 
Legacy Grants Program (VLGP) regulations to

[[Page 107002]]

align them with regulatory updates to the uniform administrative 
requirements and other requirements for Federal awards and makes 
additional revisions to improve the process for administration of the 
grant program. This rulemaking implements housekeeping amendments to 
key terms, legal citations, and definitions and extends timelines for 
grant recipient reporting requirements.

DATES: This rule is effective January 30, 2025.

FOR FURTHER INFORMATION CONTACT: John Williams, Senior Grants 
Management Specialist, Veterans Legacy Grants Program, National 
Cemetery Administration, Department of Veterans Affairs, 810 Vermont 
Avenue NW, Washington, DC 20420. Telephone: (314) 348-4073 (this is not 
a toll-free number).

SUPPLEMENTARY INFORMATION: On August 12, 2024, VA published a proposed 
rule in the Federal Register (89 FR 65572) that would align VLGP 
regulations with regulatory updates to the uniform requirements for 
Federal awards in 2 CFR part 200 and make additional revisions to 
improve the process for administration of the grant program. The public 
comment period ended on October 11, 2024, and VA received 1 comment in 
response to the proposed rule.
    The commenter expressed support for the VLGP and noted that the 
updates to the regulations would ensure clarity and compliance, provide 
grant recipients with additional flexibility to meet reporting 
requirements, and improve the program's overall effectiveness. VA 
appreciates the commenter's support and feedback. VA makes no changes 
to the rulemaking based on this comment.

Executive Orders 12866, 13563 and 14094

    Executive Order 12866 (Regulatory Planning and Review) directs 
agencies to assess the costs and benefits of available regulatory 
alternatives and, when regulation is necessary, to select regulatory 
approaches that maximize net benefits (including potential economic, 
environmental, public health and safety effects, and other advantages; 
distributive impacts; and equity). Executive Order 13563 (Improving 
Regulation and Regulatory Review) emphasizes the importance of 
quantifying both costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility. Executive Order 14094 (Executive Order on 
Modernizing Regulatory Review) supplements and reaffirms the 
principles, structures, and definitions governing contemporary 
regulatory review established in Executive Order 12866 of September 30, 
1993 (Regulatory Planning and Review), and Executive Order 13563 of 
January 18, 2011 (Improving Regulation and Regulatory Review). The 
Office of Information and Regulatory Affairs has determined that this 
rulemaking is not a significant regulatory action under Executive Order 
12866, as amended by Executive Order 14094. The Regulatory Impact 
Analysis associated with this rulemaking can be found as a supporting 
document at www.regulations.gov.

Regulatory Flexibility Act

    The Secretary hereby certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as they are defined in the Regulatory Flexibility Act (5 U.S.C. 601-
612). Amendments in the final rule will likely not be determinative of 
whether small entities receive or do not receive a grant because they 
will have limited impact on small entities complying with grant 
application and reporting requirements. In addition to some technical 
revisions to the VLGP regulations, this rule will merely align those 
regulations to updates to the uniform administrative requirements and 
other requirements for Federal awards (2 CFR part 200). Therefore, 
pursuant to 5 U.S.C. 605(b), the initial and final regulatory 
flexibility analysis requirements of 5 U.S.C. 603 and 604 do not apply.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and Tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This final rule will have no such effect on 
State, local, and Tribal governments, or on the private sector.

Paperwork Reduction Act

    Although this final rule contains collection of information under 
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521), there are no provisions associated with this rulemaking 
constituting any new collection of information or any revisions to the 
existing collection of information. The collections of information for 
38 CFR 38.730 are currently approved by the Office of Management and 
Budget (OMB) and have been assigned OMB control numbers 4040-0004, 
4040-0006, 4040-0007, and 4040-0013.

Assistance Listing

    The Assistance Listing number and title for the program affected by 
this document are 64.204, Veterans Legacy Grants Program.

Congressional Review Act

    Pursuant to Subtitle E of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (known as the Congressional Review Act) (5 U.S.C. 
801 et seq.), the Office of Information and Regulatory Affairs 
designated this rule as not satisfying the criteria under 5 U.S.C. 
804(2).

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, signed and approved 
this document on December 20, 2024, and authorized the undersigned to 
sign and submit the document to the Office of the Federal Register for 
publication electronically as an official document of the Department of 
Veterans Affairs.

List of Subjects in 38 CFR Part 38

    Administrative practice and procedure, Cemeteries, Claims, Crime, 
Grants programs--veterans, Veterans.

Michael P. Shores,
Director, Office of Regulation Policy & Management, Office of General 
Counsel, Department of Veterans Affairs.

    For the reasons stated in the preamble, the Department of Veterans 
Affairs amends 38 CFR part 38 as set forth below:

PART 38--NATIONAL CEMETERIES OF THE DEPARTMENT OF VETERANS AFFAIRS

0
1. The authority citation for part 38 continues to read as follows:

    Authority: 38 U.S.C. 107, 501, 512, 531, 2306, 2400, 2402, 2403, 
2404, 2407, 2408, 2411, 7105.


0
2. Amend Sec.  38.715 by:
0
a., Removing ``Notice of Funding Availability (NOFA)'' and adding in 
its place ``Notice of Funding Opportunity (NOFO)'' in the introductory 
text;
0
b. Removing ``NOFA'' and adding in each place ``NOFO'' in paragraphs 
(a) and (c)(3) and the paragraph (k) heading; and
0
c. Revising paragraphs (j) and (k) and the authority citation at the 
end of the section.
    The revisions read as follows:


Sec.  38.715  Definitions.

* * * * *
    (j) Recipient means an eligible recipient (or entity) that is 
awarded a

[[Page 107003]]

VLGP grant under this part. It does not include a subrecipient or 
individual that is a beneficiary of the award.
    (k) Notice of Funding Opportunity (NOFO) means a formal 
announcement of the availability of a Federal funding opportunity 
published in the OMB-designated government-wide website Grants.gov 
(http://www.grants.gov) in accordance with Sec.  38.725 and 2 CFR 200.1 
and 200.204.

(Authority: 38 U.S.C. 501(d), 2400 note, 2 CFR 200.1 and 200.204))


Sec.  38.720  [Amended]

0
3. Amend Sec.  38.720 by:
0
b. Removing ``NOFA'' and adding in its place ``NOFO'' in paragraph (b);
0
b. Removing ``grantee'' and adding in its place ``recipient'' in 
paragraphs (b), (c), and (e);
0
c. Removing ``grantee's'' and adding in its place ``recipient's'' in 
paragraph (c); and
0
d. Removing ``NOFA'' and adding in its place ``NOFO'' in paragraph (e).

0
4. Amend Sec.  38.725 by:
0
a. Revising the section heading and introductory text; and
0
b. Removing ``2 CFR 200.203'' and adding in its place ``2 CFR 200.204'' 
in the authority citation at the end of the section.
    The revisions read as follows:


Sec.  38.725  Notice of Funding Opportunity (NOFO).

    When funds are available for VLGP grants, VA will publish a NOFO at 
Grants.gov (http://www.grants.gov). The NOFO will identify:
* * * * *

0
5. Amend Sec.  38.730 by:
0
a. Removing ``NOFA'' each place it appears and adding in each place 
``NOFO'';
0
b. Removing ``2 CFR 200.203'' and adding in its place ``2 CFR 200.208'' 
in the authority citation at the end of the section; and
0
c. Adding a parenthetical OMB reference to the end of the section.
    The addition reads as follows:


Sec.  38.730  Applications.

* * * * *
(The Office of Management and Budget has approved the information 
collection provisions in this section under control numbers 4040-
0004, 4040-0006, 4040-0007, and 4040-0013).

0
6. Amend Sec.  38.735 by:
0
a. Revising paragraphs (a) and (b); and
0
b. Removing ``2 CFR 200.203'' and adding in its place ``2 CFR 200.206'' 
in the authority citation at the end of the section.
    The revisions read as follows:


Sec.  38.735  Additional factors for deciding applications.

    (a) Applicant's history of performance. VA may consider the 
applicant's record in managing Federal awards, if a prior recipient of 
a Federal award, including timeliness of compliance with applicable 
reporting requirements and conformance to the terms and conditions of 
any previous Federal award.
    (b) Applicant's financial stability. Applicants must meet and have 
maintained standards of financial stability for participation in 
Federal grant programs.
* * * * *


Sec.  38.740  [Amended]

0
7. Amend Sec.  38.740 by:
0
a. Removing ``NOFA'' each place it appears and adding in each place 
``NOFO''; and
0
b. Removing ``2 CFR 200.203'' and adding in its place ``2 CFR 200.205'' 
in the authority citation at the end of the section.


Sec.  38.745  [Amended]

0
8. Amend Sec.  38.745 in the authority citation by removing ``2 CFR 
200.203'' and adding in its place ``2 CFR 200.211''.


Sec.  38.750  [Amended]

0
9. Amend Sec.  38.750 in the authority citation by removing ``2 CFR 
200.203'' and adding in its place ``2 CFR 200.204''.


Sec.  38.755  [Amended]

0
10. Amend Sec.  38.755 by:
0
a. Removing ``grantee'' and adding in its place ``recipient'' in the 
first sentence of the introductory text; and
0
b. Removing ``2 CFR 200.203'' and adding in its place ``2 CFR 200.211'' 
in the authority citation at the end of the section.

0
11. Amend Sec.  38.760 by:
0
a. Revising paragraph (a);
0
b. Removing ``NOFA'' and adding in its place ``NOFO'' in paragraph (b); 
and
0
c. Removing ``2 CFR 200.203'' and adding in its place ``2 CFR 200.305'' 
in the authority citation at the end of the section.
    The revision reads as follows:


Sec.  38.760  Payments under the grant.

    (a) Manner of payment. Recipients are to be paid in accordance with 
2 CFR 200.305.
* * * * *

0
12. Amend Sec.  38.765 by:
0
a. Revising the section heading and paragraph (a); and
0
b. Removing ``2 CFR 200.203'' and adding in its place ``2 CFR 200.344'' 
in the authority citation at the end of the section.
    The revisions read as follows:


Sec.  38.765  Recipient reporting requirements.

    (a) Final report. The recipient must submit to VA, no later than 
120 calendar days after the end date of the period of performance, all 
financial, performance, and other reports as required by the terms and 
conditions of the Federal award.
* * * * *

0
13. Amend Sec.  38.770 by:
0
a. Removing ``grantee'' each place it appears and adding in each place 
``recipient''; and
0
b. Revising the authority citation at the end of the section.
    The revision reads as follows:


Sec.  38.770  Recovery of funds by VA.

* * * * *
(Authority: 38 U.S.C. 501(d), 2400 note, 2 CFR 200.339 and 200.410)


Sec.  38.775  [Amended]

0
14. Amend Sec.  38.775 by:
0
a. Removing ``grantee'' each place it appears and adding in each place 
``recipient''; and
0
b. Removing ``2 CFR 200.203'' and adding in its place ``2 CFR 200.329'' 
in the authority citation at the end of the section.


Sec.  38.780  [Amended]

0
15. Amend Sec.  38.780 by:
0
a. Removing ``grantees'' and ``Grantees'' and adding in their places 
``recipients'' and ``Recipients'', respectively, in paragraph (b); and
0
b. Removing ``2 CFR 200.400-200.475'' and adding in each place ``2 CFR 
200.400-200.476''.

0
16. Revise Sec.  38.785 to read as follows:


Sec.  38.785  Record retention and access.

    Recipients must ensure that records are maintained and accessible 
in accordance with 2 CFR 200.334-200.338. Recipients must produce such 
records at VA's request.

(Authority: 38 U.S.C. 501(d), 2400 note, and 2 CFR 200.334-200.338)

[FR Doc. 2024-31230 Filed 12-30-24; 8:45 am]
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