# 2026-22649: Legal Aid Grantees Get Looser Approval Limits and Cleaner Paperwork 2026-22649, Cost Standards and Procedures; Purchasing and Property Management, is a Federal Register rule from Legal Services Corporation published 2026-11-05, effective 2027-06-01; PRIA reads it as touching household money (as of 2026-11-06). - Canonical: https://policyrisk.com/federal-register/2026-22649 - As of: 2026-11-06 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-22649 - Title: Cost Standards and Procedures; Purchasing and Property Management - Type: Rule - Agencies: Legal Services Corporation - Citation: 91 FR 69720 - Published: 2026-11-05 - Effective: 2027-06-01 - Comments close: not stated - Significant: no - Touches household money: yes - Regulation identifier numbers: none - Last updated: 2026-11-06 ## In one line Legal Aid Grantees Get Looser Approval Limits and Cleaner Paperwork ## Summary The Legal Services Corporation is updating its rules on how grant recipients manage money and property. They’re raising the spending limit that needs prior approval, making paperwork simpler, and clarifying how to handle fundraising money. These changes start June 1, 2027, and aim to make managing federal funds easier and more consistent for everyone involved. ## Abstract This final rule revises the Legal Services Corporation's (LSC or Corporation) regulations governing cost allowability, prior approval requirements, and property and procurement standards applicable to LSC recipients. The final rule clarifies when recipients must obtain prior approval for expenditures of LSC funds; increases the monetary threshold for prior approval; clarifies the treatment of proceeds from fundraising activities supported with LSC funds; provides additional flexibility in LSC's review of prior approval requests; clarifies documentation requirements for prior approval requests; and revises the deadline and requirements for accounting for LSC funds invested in real estate. These amendments are intended to clarify existing requirements, reduce administrative burden, promote consistent oversight and enforcement, and strengthen accountability in the use of Federal funds. ## Effects PRIA read - Prior‑approval threshold raised to $50,000: benefit, medium. If you are an LSC grant recipient, LSC raised the prior‑approval monetary threshold from $25,000 to $50,000. The $50,000 threshold applies across multiple rules (including prior approval, exigent circumstances, and capital improvements) and means you generally do not need LSC prior written approval… - Prior approval must precede legal obligation: benefit, medium. If you are an LSC recipient, you must obtain LSC prior approval before incurring a legal obligation to expend more than $50,000 of LSC funds. If you cannot reasonably determine LSC charges when entering a contract, you must seek approval once you reasonably anticipate that charges to LSC will excee… - LSC funds used for fundraising must be repaid: cost, medium. If you charge fundraising costs to an LSC grant, you must reimburse your LSC account from the fundraising proceeds in an amount equal to the LSC funds charged. The rule also states fundraising proceeds are not 'derivative income.' LSC explains the reimbursement applies to costs incurred specificall… - Prior‑approval review timelines and docs clarified: benefit, low. If you request LSC prior approval, LSC will decide within 30 days for personal property/services/capital improvements and 60 days for real estate after it has received materials it deems sufficient. LSC will tell you within 20 days if more information is needed; if so, the decision period restarts… - Real‑estate accounting tied to audited statements: benefit, low. If you use LSC funds for real property, you must keep a cumulative accounting of LSC funds spent on acquisition, financing, and capital improvements for each LSC‑funded property. You must provide that accounting annually no later than the date you are required to submit your annual audited financia… ## Related documents - [2026-22650](https://policyrisk.com/federal-register/2026-22650): Purchasing and Property Management, 2026-11-05 - [2026-22542](https://policyrisk.com/federal-register/2026-22542): Pro Bono Innovation Fund Process for Applying for 2027 Grants, 2026-11-05 - [2026-22543](https://policyrisk.com/federal-register/2026-22543): Notice to LSC Grantees of Application Process for Subgranting Special Grant Funds, 2026-11-05 - [2026-22284](https://policyrisk.com/federal-register/2026-22284): Notice of Intent To Award-Grant Awards for the Delivery of Civil Legal Services to Eligible Low-Income Clients Beginning January 1, 2027, 2026-11-02 - [2026-21254](https://policyrisk.com/federal-register/2026-21254): Notice of Revisions to Performance Area One of the LSC Performance Criteria, 2026-10-19 - [2026-15839](https://policyrisk.com/federal-register/2026-15839): Revised List of Federal Laws Relating to Proper Use of Federal Funds, 2026-08-05 ## Sources - [2026-22649 on federalregister.gov](https://www.federalregister.gov/documents/2026/11/05/2026-22649/cost-standards-and-procedures-purchasing-and-property-management) - [2026-22649 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-11-05/pdf/2026-22649.pdf) ## Related - [Previous: 2026-22647, Air Plan Revisions; Arizona; Maricopa County Air Quality Department; New Source…](https://policyrisk.com/federal-register/2026-22647) - [Next: 2026-22657, Medical Devices; Ear, Nose, and Throat Devices; Classification of the External…](https://policyrisk.com/federal-register/2026-22657) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-22649 (as of 2026-11-06).