Federal Grant Review Act Exposed

The Federal Grant Review Act is listed under ALEC's Tax and Fiscal Policy Task Force and was included in the 1995 Sourcebook of American State Legislation. According to ALEC.org, the Act was re-approved by the Board of Directors on January 29, 2013. (Accessed on 1/22/2016).

ALEC Bill Text

Summary

A major problem affecting state legislatures in maintaining fiscally sound government and reconciling competing needs for state revenues is the continuing participation of their states in federal programs that obligate state revenues and resources. State agencies have furthered the problem of onerous federal mandates on states by getting involved in federal programs that place burdens on the state.

This Act is designed to help solve this problem by requiring a legislative review of all state applications for federal assistance or participation in federal programs, prior to the submission of such applications to the federal government. The Act also prevents federal grant money from being used to influence legislators at any level in support or opposition to legislation.

Model Legislation

{Title, enacting clause, etc.}

Section 1.

This Act shall be cited as the Federal Grant Review Act.

Section 2. {Application for federal grant.}

Prior to the submission of any financial assistance or grants from the federal government, or agency thereof, by or on behalf of the state or any agency thereof, such application shall be submitted for legislative review to the (joint legislative budget committee). If the application is approved by the committee, the agency may submit the application to the appropriate federal agency.

Section 3. {Report of federal grants.}

Each state agency shall submit to the [joint legislative budget committee] written reports containing an account of all financial assistance or grants from the federal government, or agency thereof, expected to be accepted and expended by such state agencies during the ensuing fiscal year and for the projects or programs for which such funds will be expended. Each report shall be presented to the (joint legislative budget committee) with such state agency's budget request.

Section 4.

No federal grant may be used in any attempt to influence the introduction, enactment, or modification of any federal, state, or local legislation or referenda through the communication with any member or employee of the Congress, state legislature, or local government entity (including efforts to influence state or local officials to engage in similar lobbying activities), or with any government official or employee in connection with a decision to sign or veto enrolled legislation.

Section 5.

No federal grant may be used in any attempt to influence the introduction, enactment, or modification of any of federal, state, or local legislation or referenda by preparing, distributing, or using publicity or propaganda, or by urging any member of the general public or any segment thereof to contribute to or participate in any mass demonstration, march, rally, fund raising drive, lobbying campaign, or letter writing or letter campaigns.

Section 6. {Severability clause.}

Section 7. {Repealer clause.}

Section 8. {Effective date.}

ALEC's Sourcebook of American State Legislation 1995