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Update on Matching Funds Requirement

Update on 7 CFR 3419, Matching Funds Requirement for Formula Funds for Agricultural Research and Extension Activities at 1890 Land-Grant Institutions, Including Tuskegee University, and at 1862 Land-Grant Institutions in Insular Areas

NIFA is proposing to revise this rule due to the statutory amendments of the Farm Security and Rural Investment Act of 2002 (FSRIA). Section 7212 of FSRIA revised the matching requirements in section 1449 of the National Research, Extension, and Teaching Policy Act of 1977 (NARETPA) from 50 percent in fiscal year (FY) 2002 to 60 percent in FY 2003; 70 percent in FY 2004; 80 percent in FY 2005; 90 percent in FY 2006; and 100 percent in FY 2007 and thereafter. In addition, the Secretary of Agriculture was provided with new waiver authority for the matching funds requirement above 50 percent for any fiscal year for an eligible institution of a state if the secretary determines that the state is unlikely to satisfy the matching requirement.

Section 7213 of FSRIA amended the Hatch Act and Smith-Lever Act to no longer subject the insular area land-grant institutions to the NARETPA section 1449 matching requirements. Instead, section 3(d) of the Hatch Act and section 3(e) of the Smith-lever Act provide for the insular areas a 50 percent matching requirement of the Federal formula funds beginning in FY 2003. Both Acts empower the Secretary of Agriculture to waive these matching requirements for any fiscal year if the Secretary determines that the government of the insular area is unlikely to satisfy the matching requirements.

The Proposed Rule, published in the Federal Register on April 29, 2003, incorporates these amendments and also seeks to clarify other issues regarding the existing rule, particularly the definition of “Qualifying Educational Activities.” In addition, this Federal Register Notice seeks comments on a request to revise and extend the associated information collection, OMB No. 0524-0038, Form NIFA-2103, “Section 1449 Matching Funds Requirement for Research and Extension Activities at Eligible Institutions.”

Policy guidance on the matching requirements for the insular 1862 land-grant institutions was issued on March 10, 2003.

Proposed Rule:

Form NIFA-2103, “Section 1449 Matching Funds Requirement for Research and Extension Activities at Eligible Institutions.”

Comments on the Proposed Rule had to be submitted on or before June 30, 2003, to the address in the notice.

Comments on the information collection had to be submitted on or before July 3, 2003, to the address in the notice.

 

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