Agencies Issue Warnings on Recovery Act Program Extensions

NIH and the National Science Foundation have each recently issued notices warning recipients of Recovery Act funding that previously automatic no-cost extensions will not be granted and that projects need to end by September 30, 2013, unless the agency has given prior approval. The Office of Management and Budget (OMB) has said projects funded with Recovery Act money should be completed by this date, or agencies will have to take steps to "reclaim funds that remain unspent."

NIH noted that for projects that already have end dates beyond September 30, 2013, "NIH staff administering these grants will also reach out to recipients to discuss possible strategies for accelerating progress and expenditures. Revised award terms will vary depending on the award terms provided in the current notice of award."

In a nearly identical notice, NSF outlined the requirements for expenditures by September 30, 2013, but also indicated that it may seek a waiver from OMB's mandates. For any awards "anticipated to continue past September 30, 2013, NSF grantees must contact the program officer identified in the award notice in writing that an extension of the expiration date is vital for the completion of the project," NSF said. "All requests must be received on or before June 1, 2012, regardless of the current project expiration date. Prior written approval to extend beyond September 30, 2013 will only be considered" based on OMB criteria and "only if NSF receives a waiver from OMB," NSF said.

Other government agencies are expected to issue similar notices to grantees who received Recovery Act funding.