Stop the Outlay of Payments Act
Bill: S.2056 | Sponsor: Sen. Ernst, Joni (R-IA)
Policy area: Government Operations and Politics

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.

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop the Outlay of Payments Act''.

SEC. 2. FEDERAL GRANTS.

    (a) Definitions.--In this section:
            (1) Agency.--The term ``agency'' means--
                    (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'' means the Director of 
        the Office of Management and Budget.
            (3) Federal award.--The term ``Federal award'' means a 
        grant, subgrant, contract, subcontract, loan, award, or 
        cooperative agreement awarded by an agency.
            (4) Suspended entity.--The term ``suspended entity'' means 
        a recipient of a Federal award, any portion of which the head 
        of an agency suspends or terminates for a reason described in 
        subsection (b)(2).
    (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).
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