1. Matching Requirements for Formula Grants 2010 National Extension and Research Administrative Officers’ Conference (NERAOC) Hosted by the University of Wisconsin Madison, Wisconsin May 16 – 20, 2010 Session 45

2. Matching for Formula Grants Wednesday, May 19, 2010 Session 45 Presenters: Brenda Barnett Budget & Fiscal Specialist & Patricia Myers, Grant Specialist Team Leader

3. Congress appropriates an annual sum for formula grants.

4. States provide funds from non federal sources equal to the amount defined in legislation for the specific formula grant program. Some grants have no matching requirements. Requirements for Matching of Formula Grants

5. Matching of Funds Requirements Research Formula Grants Matching Requirements Hatch Act Multistate Research100% (50% for Territories) Hatch Act - Regular Formula100% (50% for Territories) McIntire-Stennis100% (none for Territories) Evans Allen (§1445)100% Animal Health and Disease ResearchAmount Over $100K

6. Matching Funds Formula Extension Grants Matching Requirement Expanded Food Nutrition Education ProgramNone Federal Employees Retirement System (FERS)100% (50% for Insular Areas) Civil Service Retirement System (CSRS)100% ( 50% for Insular Areas ) Pesticide Safety Education Program (PSEP)100% Renewable Resource Extension Act (RREA)None §1444 (NARETPA) 1890 Schools, including Tuskegee University and West Virginia State University 100% Smith Lever §3(b) & 3 ( c ) Smith –Lever Act100% (50% for Territories) Special Needs 100%

7. Matching Formula Grants Formula GrantMatching Requirements Smith Lever 100% ( 50% for Territories) 7 U.S.C§343 (e) (1) (e) (4) No allotment shall be made to a State and no payments from the allotment shall be made to a State, in excess of the amount that the State makes available out of non-Federal funds for cooperative extension work. Beginning for fiscal year 2003, the insular areas of [American Samoa,] the Commonwealth of Puerto Rico, Guam, [Micronesia, the Northern Marians Islands,] and the Virgin Islands of the United States shall provide matching funds from non-Federal sources in an amount equal to not less than 50 percent of the formula funds distributed by the Secretary to each of the insular areas, respectively. The Secretary may waive the matching fund requirement [of 50 percent] for any fiscal year if the Secretary determines that the government of the insular area will be unlikely to meet the matching requirement for the fiscal year.

8. Matching Formula Grants Formula GrantMatching Requirements Animal Health & Disease ResearchAmount Over $100K “ No funds in excess of $100,000…shall be paid by the Federal Government during any fiscal year in excess of the amount from non-Federal sources ….” (7 U.S.C. 3200) The Secretary to make payments in excess of $100,000 with appropriate certificate from the State. If an eligible institution that certified for matching funds fails to make funds available equal to the certification the difference between the Federal matching funds and the funds made available to and budgeted by the eligible institution shall be reapportioned among qualified other States.

9. Matching Formula Grants Formula GrantMatching Requirements Civil Service Retirement System 100% “…No payment will be made to a State in excess of the amount that the State makes available out of non-Federal funds for cooperative extension work.” Section 3(e)(1) of the Smith-Lever Act (7 U.S.C. §343(e)(1) subsection (b) or (c) Beginning in Fiscal Year 2003 the insular areas of [American Samoa,] the Commonwealth of Puerto Rico, Guam, [Micronesia, the Northern Marians Islands,] and the Virgin Islands of the United States match funds from non- Federal sources in an amount equal to not less than 50 percent of the formula funds distributed. section 3(e)(4) of the Smith-Lever Act (U.S.C. §343(e)(4)

10. Matching Formula Grants Formula GrantMatching Requirements Civil Service Retirement System (CSRS) 100% The Secretary may waive the matching fund requirement of 50 percent for any fiscal year if the Secretary determines that the government of the insular area will be unlikely to meet the matching requirement for the fiscal year. Section 3(e)(1) of the Smith-Lever Act (7 U.S.C. §343(e)(1)

11. Matching Formula Grants Formula GrantMatching Requirements Federal Employees Retirement System (FERS) 100% …“no allotment shall be made to a State and no payments from the allotment shall be made to a State, in excess of the amount that the State makes available out of non-Federal funds for cooperative extension work.” Section 3(e)(1) of the Smith-Lever Act (7 U.S.C. §343(e)(1) “Effective beginning for fiscal year 2003, the insular areas of [American Samoa,] the Commonwealth of Puerto Rico, Guam, [Micronesia, the Northern Marians Islands,] and the Virgin Islands of the United States shall provide matching funds from non-Federal sources in an amount equal to not less than 50 percent of the formula funds distributed by the Secretary to each of the insular areas, respectively…” Section 3(e)(4) of the Smith-Lever Act (U.S.C. §343(e)(4)

12. Matching Formula Grants Formula GrantMatching Requirements Federal Employees Retirement System (FERS) 100% The Secretary may waive the matching fund requirement of 50 percent for any fiscal year if the Secretary determines that the government of the insular area will be unlikely to meet the matching requirement for the fiscal year. Section 3(e)(1) of the Smith-Lever Act (7 U.S.C. §343(e)(1)

13. Matching Formula Grants Formula GrantMatching Requirements Evans Allen100% A State is required to provide matching funds from non-federal sources. Matching funds must equal not less than 100% of the formula grant funds. Notwithstanding [redistributing the funds], the Secretary may waive the matching funds requirement... above the 50 percent level for any fiscal year for an eligible institution of a State if the Secretary determines that the State will be unlikely to satisfy the matching requirement.

14. Matching Formula Grants Formula GrantMatching Requirements Evans Allen (cont)100% 7 CFR 3419.6 defines “non-Federal sources” as “funds made available by the State to the eligible institution either through direct appropriation or under any authority (other than authority to charge tuition and fees paid by students) provided by a State to an eligible institution to raise revenue, such as gift acceptance authority or user fees.”

15. Matching Formula Grants Formula GrantMatching Requirements Evans Allen (cont)100% 7 CFR 3419.6 requires matching funds for the formula programs to be used by an eligible institution for agricultural research and extension activities that have been approved in the plan of work required under Section 1444(d) and 1445(c) of the NARETPA 1977…or for qualifying educational activities.”

16. Matching Formula Grants Formula GrantMatching Requirements Expanded Food & Nutrition Education None 7 CFR 3419.1 defines “matching funds” as “funds from non-Federal sources made available by the State to the eligible institutions….[for] programs or activities that fall within the purposes of agricultural research and cooperative extension under Sections 1444 and 1445 of NARETPA…or [for] qualifying educational activities. Matching funds means cash contributions and excludes in-kind matching contributions.”

17. Matching Formula Grants Formula GrantMatching Requirements Expanded Food & Nutrition EducationNone It defines “non-Federal sources” as “funds made available by the State to the eligible institution either through direct appropriation or under any authority (other than authority to charge tuition and fees paid by students) provided by a State to an eligible institution to raise revenue, such as gift acceptance authority or user fees.” Finally, it defines “qualifying educational activities” as “programs that address food and agricultural sciences components of an eligible institution.

18. Matching Cost Sharing Requirements Renewable Resource Extension Act Endowment Interest None There is no cost-sharing or matching requirement for these programs.

19. Matching Requirements Hatch Act – Multistate ResearchPer Formula 100 % …“no allotment shall be made to a State under subsection (b) or (c), and no payments from the allotment shall be made to a State, in excess of the amount that the State makes available out of non-Federal funds. Section 3(d)(1) of the Hatch Act of 1887 (7 U.S.C. 361c(d)(1 “Effective beginning for fiscal year 2003, the insular areas of American Samoa, the Commonwealth of Puerto Rico, Guam, Micronesia, Northern Mariana Islands, and the Virgin Islands of the United States shall provide matching funds from non-Federal sources in an amount equal to not less than 50 percent of the formula funds distributed to each of the insular areas, respectively, under this section.... Section 3(d)(4) of the Hatch Act of 1887 (7 U.S.C. 361c(d)(4). The Secretary may waive the matching fund requirement of 50 percent for any fiscal year if the Secretary determines that the government of the insular area will be unlikely to meet the matching requirement for the fiscal year.” Section 7403 of the Food, Conservation, and Energy Act of 2008 amended section 3(d)(4) of the Hatch Act, making the District of Columbia subject to the same matching requirements as the insular 1862 Land-Grant Institutions upon enactment (May 22, 2008). *Matching may be more than 100% due to the off-the-top MRF funding.

20. Matching Requirements Hatch Act of 1887 - Regular Program100% (50% for Territories) No allotment shall be made to a State and no payments from the allotment shall be made to a State, in excess of the amount that the State makes available out of non-Federal funds. Section 3(d)(1) of the Hatch Act of 1887 (7 U.S.C. 361c(d)(1)) Beginning for fiscal year 2003, the insular areas of American Samoa, the Commonwealth of Puerto Rico, Guam, Micronesia, Northern Mariana Islands, and the Virgin Islands of the United States were authorized to provide matching funds from non-Federal sources in an amount equal to not less than 50 percent of the formula funds distributed to each of the insular areas. Section 3(d)(4) of the Hatch Act of 1887 ( 7 U.S.C. 361c(d)(4) The Secretary may waive the matching fund requirement [of 50 percent] for any fiscal year if the Secretary determines that the government of the insular area will be unlikely to meet the matching requirement for the fiscal year.” Section 7403 of the Food, Conservation, and Energy Act of 2008 amended section 3(d)(4) of the Hatch Act to subject the District of Columbia to the same matching requirements as the insular 1862 Land- Grant Institutions (May 22, 2008)

21. Matching Requirements McIntire-Stennis100% (none for Territories) Formula grant recipients are to provide matching either cash or in-kind, on a dollar-for-dollar basis on all Federal funds allotted. Eligible institutions located in insular are not required to match if the allocation is at or below $200,000.

22. Matching Requirements McIntire-Stennis (cont)100% (none for Territories) Part VIII.A.6 of the FGO Final for McIntire-Stennis describes matching requirements. Matching funds are mandated in Section 4 of the McIntire-Stennis Act (16 U.S.C. 582a-3). 7 CFR 3015.50-56 prescribes the standards applicable to determining the allowability of cash and in-kind contributions for matching funds. Matching funds also must be expended on approved McIntire-Stennis projects.

23. Matching Requirements Section 1444100% Known as Section 1444 National Agriculture Research Extension and Teaching Act of 1977 (NARETPA) Title XIV P.L. 95-113, The Food and Agricultural Act Section 1444 Program The matching fund requirement may be waived. – If the Secretary determines the state cannot meet the matching requirements.

24. Matching Cost Sharing Requirements Pesticide Safety Education Program 100% Beginning October 1, 1978, annual appropriations were authorized for the Administrator to provide through cooperative agreements an amount equal to 50 percent of the anticipated costs to each State or Indian tribe, as agreed to under such cooperative agreements, of conducting training and certification programs during such fiscal year. If funds sufficient to pay 50 percent of the cost for any year are not appropriated, the share of each State and Indian tribe shall be reduced in a like proportion in allocating available funds.” Funds provided by Environment Protection Agency EPA.

25. Matching Requirements Special Needs100% 1862 Land-grant institutions in the 50 States must match 100% of the Special Needs funds received with funds from non-Federal sources. State or County appropriations Must be in cash Must be used for extension activities approved in the eligible institution’s 5-year Plan of Work

26. Hatch Regular Hatch Act 1887 Hatch Multi-State Hatch Act 1887 Smith-Lever 7 U.S.C§343 (e) (1) (e) (4) Section 1444 NARETPA Section 1449 7 U.S.C. 3222D Section 1445 7 CFR 3419.1 7 CFR 3419.6 Matching Authorities

27. FGO Guidance on Waivers Frequency –Waivers should be submitted with the submission of the SF 424 Mandatory application in Grants.gov: Initial: A pre-waiver may be granted when the institution recognizes that the State will be unlikely to satisfy the matching requirement (i.e., shortfall of matching funds) for the fiscal year. Update/Final: A post-waiver may be granted when the institution knows the exact amount of the shortfall of matching funds for the fiscal year.

28. Hatch Regular & Hatch Multistate Waiver Criteria Natural Disaster; State and/or institution facing a financial crisis; Demonstration of a good faith effort to obtain funds.

29. AREERA (Hatch Regular & Hatch Multistate) AREERA (Section 105 & 204 Compliance) –Research or Extension Director may submit a letter to the NIFA Director requesting a waiver. –All LGI’s should submit a request for a waiver as soon as it is recognized that the State will be unlikely to satisfy the matching requirement. –Post waivers require LGI’s to provide an explanation and justification as to why the request was not made in the appropriate FY.

30. AREERA (Hatch Regular & Hatch Multistate) AREERA Waivers (Cont.) –Waiver requests must indicate the name of the institution, type of requests (i.e. multistate extension or integrated), Appropriate FY, the basis for requests, (i.e., one or more of criteria), supporting justification, back-up documentation (i.e., newspaper articles and/or clippings; State budget projections), and amount. –All waivers are approved by the NIFA Director.

31. AREERA Waiver Criteria Natural disaster, flood, fire, tornado, hurricane, or drought; State/institution facing a financial crisis; and/or Other similar circumstance.

32. Section 1444 – Extension Program Section 1445 – Evans Allen Waiver Criteria Natural Disaster State and/or institution facing a financial crisis Demonstration of a good faith effort to obtain funds.

33. Hatch Regular & Hatch Multistate Formula Grant Opportunity Waivers – SF 424 Mandatory Application –1862 land-grant institutions in the insular areas of American Samoa, the Commonwealth of Puerto Rico, Guam, Micronesia, Northern Marianas Islands, Virgin Islands, and the University of the District of Columbia.

34. AREERA (Hatch Regular & Hatch Multistate) AREERA (Section 105 & 204 Compliance) –Research or Extension Director may submit a letter to the NIFA Director requesting a waiver. –All LGI’s should submit a request for a waiver as soon as it is recognized that the State will be unlikely to satisfy the matching requirement. –Post waivers require LGI’s to provide an explanation and justification as to why the request was not made in the appropriate FY.

35. Questions??? For information regarding formula grant waivers, please contact Brenda Barnett or Patricia Myers, Formula Grant Section, Awards Management Branch, Office of Extramural Programs via email at: bbarnett@nifa.usda.gov pmyers@nifa.usda.gov THANKS!