Stop the Outlay of Payments Act

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. Short title This Act may be cited as the Stop the Outlay of Payments Act 2. Federal grants (a) Definitions In this section: (1) Agency The term agency (A) an Executive agency, as defined in section 105 of title 5, United States Code; and (B) an independent regulatory agency, as defined in section 3502 of title 44, United States Code. (2) Director The term Director (3) Federal award The term Federal award (4) Suspended entity The term suspended entity (b) Notification (1) In general Not later than 120 days after the date on which an agency suspends or terminates any portion of a Federal award to the recipient of the Federal award for a reason described in paragraph (2), the head of an agency shall notify the Director of the suspension or termination. (2) Reason for suspension or termination A reason for a suspension or termination of a Federal award described in this paragraph is a failure of the recipient of the Federal award to comply with— (A) the terms and conditions of the Federal award; (B) a Federal law or regulation; or (C) a request by the agency awarding the Federal award for information or materials relating to the Federal award. (3) List of suspensions The Director shall maintain an up-to-date list of suspended entities on the website of the Office of Management and Budget. (c) Effect on other grants (1) In general Subject to paragraph (2), the head of an agency may not award a Federal award or disburse funds under a Federal award to a suspended entity until the date on which the suspended entity remedies the reason for a suspension or termination of a Federal award of the suspended entity under subsection (b)(2). (2) Exceptions The head of an agency may award a Federal award and disburse funds under a Federal award to a suspended entity if— (A) the suspended entity has been classified as a suspended entity as a result of a clerical error; or (B) the suspended entity has an agreement with the agency that suspends or terminates the Federal award of the suspended entity to resolve the reason for the suspension or termination described in subsection (b)(2). (3) Compliance For the purpose of complying with paragraph (1), the head of an agency shall reference the list of suspended entities maintained by the Director under subsection (b)(3).

Summary: Stop the Outlay of Payments Act This bill prohibits the award of federal funds to entities that have had prior awards suspended or terminated due to certain legal violations and that have failed to take necessary remedial action. Specifically, the bill requires federal agencies to notify the Office of Management and Budget (OMB) within 120 days of suspending or terminating any portion of a federal award to a recipient for failure to comply with (1) the terms and conditions of the award, (2) a federal law or regulation, or (3) a request by the agency making the award for information or materials relating to that award. The OMB must maintain an up-to-date list of suspended entities on its website. An agency may not make a federal award or disburse funds under an award to a suspended entity until that entity remedies the reason for the suspension or termination, with specified exceptions.