§1152 Oversight and Grant Procedures

Summary

Set up procedures to watch over and audit grants so money is spent the right way and follows the Secretary’s priorities. The Secretary, and the Secretary of Transportation for Amtrak grants, may hire outside contractors to do extra audits and reviews of safety, security, buying, management, and money rules. Within 180 days after August 3, 2007, the Secretary must create rules and a schedule for awarding grants, including how to apply, how to decide who is eligible, and a grant agreement. Those rules must follow, as much as possible, the grant rules in 46 U.S.C. 70107(i) and (j). The Secretary may issue non‑binding letters of intent to promise future funding up to the Federal share of a capital project and must set a reimbursement schedule for payments as funds become available if the recipient builds the project without a grant. A recipient given a letter must tell the Secretary before starting the project. The Secretary must tell the appropriate congressional committees at least 5 days before issuing a letter of intent and at least 5 days before awarding any grant. A letter of intent is not a Federal budget obligation under 31 U.S.C. 1501 and does not count as an administrative financing commitment; real obligations happen only when money is authorized and appropriated. Grant agreements must require return and recovery of any misspent funds. The Secretary must try, when practical, to have grant recipients use small, minority, women‑owned, or disadvantaged businesses as contractors or subcontractors.