§1152 Oversight and Grant Procedures

Summary

Tell how grants are run, checked, and paid. The Secretary must create rules, monitoring, and audits to make sure grant money is spent for the right purposes. For grants to Amtrak, the Secretary must work with the Secretary of Transportation. The Secretary can hire outside auditors to check safety, security, buying, management, and finances of any grant recipient. Not later than 180 days after August 3, 2007, the Secretary must set up the steps and timeline for awarding grants, including how to apply, how to show you qualify, and a written grant agreement. Those steps should follow, when possible, the grant rules in 46 U.S.C. 70107(i) and (j). The Secretary may give non-binding letters of intent promising future funding up to the Federal share of a project. The letter must set a payment schedule and the recipient must tell the Secretary before starting work. The Secretary must notify the appropriate congressional committees at least 5 days before issuing such a letter. Those letters are not federal obligations under section 1501 of title 31 and do not count as financing commitments until money is actually provided by law. Grant applicants must agree to return any misspent funds and the Secretary must try to get them back. The Secretary should also encourage use of small, minority-, women-, or disadvantaged-owned businesses as contractors when suitable.