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MemoMemorandumObama · D

Presidential Memorandum

Ensuring Responsible Spending of Recovery Act Funds

This memorandum directs executive agencies to implement merit-based criteria for awarding Recovery Act funds, prohibits funding for imprudent projects like casinos and golf courses, restricts registered lobbyist influence by requiring written communications and public posting, and mandates transparency measures including 30-day delays and website publication for controversial projects.

Federal Register Open PDF 74 FR 12531

Impact dates

  1. OMB Director review of implementation and recommendations to President

  2. Delay funding for public scrutiny where discretion lacking

  3. Written lobbyist communications posted on recovery website

  4. Documentation of oral policy communications with lobbyists posted on recovery website

Key directives

  • Agencies shall develop transparent, merit-based selection criteria for Recovery Act funds
  • No oral or written communications from any person shall supersede merit-based criteria
  • Funds shall not be used for casinos, gambling establishments, aquariums, zoos, golf courses, or swimming pools per section 1604
  • Agencies shall not approve imprudent projects or those not furthering Recovery Act purposes
  • Where discretion is lacking, agencies must consult OMB and delay funding 30 days for public scrutiny
  • Agencies must publish project descriptions on recovery websites
  • Agencies must monitor section 1604 compliance and take corrective action including recovery of funds and suspension/debarment
  • Registered lobbyist views on particular projects only considered if in writing
  • Registered lobbyists barred from oral communications on particular projects; must submit written communications
  • Written lobbyist communications posted publicly within 3 business days
  • Oral policy communications with lobbyists must be documented and posted within 3 business days
  • OMB Director shall issue guidance and review implementation within 60 days

Who is ordered

Timeline

Immediate

  • agency heads must take all necessary steps to comply
  • registered lobbyists barred from oral communications on particular projects
  • written lobbyist communications must be posted within 3 business days

Near term (90d)

  • OMB Director must review implementation and forward recommendations within 60 days
  • agencies must develop transparent merit-based selection criteria

Long term

  • ongoing monitoring of section 1604 compliance by inspectors general
  • continued transparency and accountability requirements for Recovery Act expenditures

Risks & tensions

  • 30-day delay provision qualified by 'longest period permitted by law if less than 30 days' creates implementation uncertainty
  • Imprudence standard (section 2(c)) leaves substantial discretion to agencies, risking inconsistent application
  • Lobbyist restrictions may face First Amendment challenges or be circumvented through non-registered influence
  • Recovery website posting requirements depend on existing infrastructure; 'as soon as practicable' allows flexibility that may reduce transparency
  • Section 4(e) disclaimer of enforceable rights limits judicial oversight of compliance
Presidential Memorandum: Ensuring Responsible Spending of Recovery Act Funds · Executive Orders