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Memorandum M-20-20: Repurposing Existing Federal Financial Assistance Programs and Awards to Support the Emergency Response to the Novel Coronavirus (COVID-19)

Summary

OMB Memorandum M-20-20 of April 9, 2020, from Acting Deputy Director for Management Michael Rigas to the heads of executive departments and agencies, directs agencies to marshal all legally available federal resources against COVID-19. Under 2 CFR § 200.102(a), OMB issues a class exception allowing federal awarding agencies to repurpose their federal assistance awards to support the COVID-19 response. As an example, agencies may let recipients donate medical equipment bought with federal assistance funds, such as personal protective equipment, to hospitals and other local entities, and the exception extends to labor, supplies and contract services. Agencies must consult legal counsel, keep records of the exceptions, and tell recipients not to assume additional funds will cover any resulting shortage. It is the third memorandum in a series, after M-20-11 and M-20-17.

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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503

DEPUTY DIRECTOR
FOR MANAGEMENT

April 9, 2020

M-20-20

MEMORANDUM TO THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

FROM: Michael Rigas hulu
Acting Deputy Director for Management

SUBJECT: | Repurposing Existing Federal Financial Assistance Programs and Awards to
Support the Emergency Response to the Novel Coronavirus (COVID-19)

As our response to the national emergency for the coronavirus disease (COVID-19)
continues to evolve, this Administration directs all Federal departments and agencies to marshal
all legally available federal resources to combat the crisis. In accordance with the authority in 2
CFR § 200.102(a), Exceptions, OMB is issuing a class exception that allows Federal awarding
agencies to repurpose their federal assistance awards (in whole or part) to support the COVID-19
response, as consistent with applicable laws.

As an example of this flexibility, agencies may allow recipients to donate medical
equipment (including, but not limited to, personal protective equipment, medical devices,
medicines, and other medical supplies) purchased with Federal assistance funds to hospitals,
medical centers, and other local entities serving the public for COVID-19 response. This class
exception also extends to the donation of other resources (such as labor, supplies, and contract
services) funded under Federal financial assistance to support COVID-19 emergency response
activities.

To exercise these exceptions, Federal awarding agencies must engage with their
respective legal counsel to ensure that any such donation or repurposing of funds as permitted
here complies with all legal requirements associated with such funding, including but not limited
to compliance with the purpose of the appropriations and any restrictions in programmatic
statutes, appropriations, and fiscal laws. Federal awarding agencies and recipients must maintain
appropriate records and documentation of these exceptions. Federal awarding agencies must
advise recipients that they should not assume additional funds will be available should the
donations or repurposing of funds result in any type of shortage.
This is the third memorandum, in a series, regarding available Federal financial
assistance flexibilities related to COVID-19. (See OMB M-20-11, Administrative Relief for
Recipients and Applicants of Federal Financial Assistance Directly Impacted by the Novel
Coronavirus (COVID-19) (March 09, 2020); and, OMB M-20-17, Administrative Relief for
Recipients and Applicants of Federal Financial Assistance Directly Impacted by the Novel
Coronavirus (COVID-19) due to Loss of Operations (March 19, 2020)):

Questions regarding the above requirements should be directed to the Office of Federal
Financial Management Grants Team at GrantsTeam@omb.eop.gov. OMB will continue to
provide updates and additional information as the situation unfolds. For the latest information,
sign up for the Grants Community of Practice: https://www.performance.gov/CAP/grants/

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