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Each year Congress passes an appropriations bill act which authorizes the federal government to expend public funds in specified ways. This is a constitutional requirement, often referred to as the ‘power of the purse’, which means the federal government cannot spend federal funds without express congressional approval.
Included in the annual appropriations bill act is the time limit Congress establishes for expenditure of the specified funds. This is referred to as the ‘period of availability’[1] or 'period of obligational availability'.[2]
Unless otherwise stated in the billact, appropriations are available for one federal fiscal year. This means those funds must be properly expended by the relevant governmental entity by the end of the current federal fiscal year. Some appropriations have longer or shorter periods of availability, specifically determined in the billact. For example, Resource Management funds appropriated to FWS are authorized for two-year periods of availability.
Excerpt from the FY2017 Appropriations BillAct:
For necessary expenses of the United States Fish and Wildlife Service, as authorized by law, and for scientific and economic studies, general administration, and for the performance of other authorized functions related to such resources, $1,255,004,000 (reduced by $1,000,000) (increased by $1,000,000), to remain available until September 30, 2018. [3]
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Frequently Asked Questions
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How is the bona fide
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needs rule met with financial
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assistance awards (grant and cooperative agreements)?
With FA awards, the bona fide need needs rule is met at the time of the award's obligation.
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