President Trump Directs DOJ to Investigate Lobbying Activities of Federal Grantees

(Reposted from National Council for Nonprofits)

On Aug. 28, President Trump issued Use of Appropriated Funds for Illegal Lobbying and Partisan Political Activity by Federal Grantees, a memo to the Attorney General directing the U.S. Department of Justice (DOJ) and heads of federal departments and agencies “to investigate whether Federal grant funds are being used to illegally support lobbying activities (See, 31 U.S.C. 1352) and to take appropriate enforcement action.” The memo states that “the possible use of Federal grants as slush funds for political and legislative advocacy raises serious legal concerns.” This statement misinterprets the referenced statute, however, which does not prohibit nonprofits or for profit businesses that receive federal grants, contracts, or cooperative agreements from lobbying. Instead, the statute – referred to as the Byrd Amendment – merely prohibits grantees from using federal funds to influence other federal funding decisions.

Nothing in federal law prohibits federally funded nonprofits from policy advocacy at the federal level or from using other revenue sources to lobby Congress or federal agencies for appropriations or for the awarding, renewal, extension, or amendment of a federal grant, contract, or cooperative agreement. However, some federal grant agreement terms go further than the Byrd Amendment and prohibit the use of federal funds for any lobbying.

The memorandum directs the Attorney General to report to the President on the results of investigations into lobbying activities by federal grant recipients in 180 days. It is unclear what, if any, enforcement actions federal agencies may attempt to take.