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Author: Scarinci Hollenbeck, LLC
Date: May 27, 2021
The Firm
201-896-4100 info@sh-law.comCongressionally directed spending (CDS) is officially back, with the Senate Appropriations Committee releasing guidelines for making requests for Fiscal Year 2022. Local governments and not-for-profit organizations (not private for-profit entities) are eligible to apply for CDS awards.
As discussed in a prior article, member-directed spending, commonly referred to as “earmarks,” was once a common practice. During this period, committees were given an administrative choice to include an earmark in legislation or an accompanying report. However, in 2011, Congress imposed a ban on congressionally directed spending in response to concerns about abuse.
Earlier this year, lawmakers began the process of resurrecting earmarks, with new safeguards in place to increase transparency and accountability. On April 26, 2021, the Senate Appropriations Committee officially announced that Congress would restore the authority to approve congressionally directed spending items.
For FY 2022, the Senate Appropriations Committee will accept appropriations requests of two different types:
In FY 2022, Senators may make requests for congressionally direct spending items in the following appropriations bills:
As set forth in the Senate Appropriations Committee’s General Guidance for Appropriation Requests, all requests for congressionally directed spending items must comply with the requirements of Standing Rules of the Senate Rule XLIV. They include:
The Senate Appropriations Committee has also instituted the following reforms:
Many senators, including New Jersey’s Senator Menendez and Senator Booker, have created online applications. The deadline to apply is May 28, 2021.
The resurrection of earmarks creates new funding opportunities for nonprofits and local governments. However, it is important to note that the CRS process will be competitive, with numerous applicants vying for a relatively small pool of funds. There may be additional opportunities in the future as transportation appropriations requests that are not included in the FY22 spending bills (due to size/cost) may be shifted to the transportation/infrastructure package that the Biden Administration and Congress are currently discussing.
If you have any questions or if you would like to discuss the matter further, please contact me, Teddy Eynon, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
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