Use of Law Enforcement Assistance Administration Program Grant Funds for Administrative Purposes

Use of Law Enforcement Assistance Administration Program Grant Funds for Administrative Purposes F u n d s o rig in a lly a w a rd e d to sta te s by th e L aw E n fo rc e m e n t A ssistan ce A d m in istratio n fo r p ro g ra m m a tic p u rp o ses, u n d er T itle I o f th e O m nibus C rim e C o n tro l an d Safe S tre e ts A c t o f 1968, m ay be used to su p p le m e n t ex h au sted ad m in istrativ e funds. A lu m p sum a p p ro p ria tio n can be used for any p u rp o se c o n sisten t w ith th e purp o ses o f th e a u th o riz in g sta tu te , an d an a g e n c y ’s re p re se n ta tio n to C o n g re ss as to h o w it p ro p o ses to a llo c a te a p p ro p ria te d funds is legally b in d in g on th e ag en cy o n ly to the ex ten t its p ro p o sed a llo catio n finds its w ay in to th e lan g u ag e o f th e a p p ro p ria tio n sta tu te itself. June 5, 1980 M EM ORANDUM OPIN IO N FOR TH E D EPUTY ATTORNEY G EN ER A L This responds to your request for our opinion on the question whether the states may be permitted to use a portion of certain unex­ pended federal grant funds in their possession for purposes other than those for which they were originally intended. We conclude that they may. The funds in question have been awarded to the states over the past several years pursuant to agreements with the Law Enforcement Assist­ ance Administration (LEAA ) under Title I of the Omnibus Crime Control and Safe Streets Act of 1968, 42 U.S.C. §§ 3701-3796 (1976) (hereafter Crime Control A ct).1 Under the terms of these agreements, certain sums have been awarded to the states for administrative or planning purposes under Part B of the Crime Control Act, 42 U.S.C. §§ 3721-25, and certain sums for programmatic purposes under Parts C and E of that Act, 42 U.S.C. §§ 3731-39, 3751-74. By the end of the present fiscal year funds awarded under Part B for administrative pur­ poses will have been entirely obligated by the states; however, there will remain to be administered and expended over the next two years 1 Funds w ere aw arded by L E A A to the states for FY 1980 in accordance w ith categories estab­ lished by the Justice System Im provem ent A ct o f 1979, Pub. L. No. 96-157, 93 Stat. 1167 (hereafter 1979 A ct). H ow ever, this A ct w as not passed by C ongress until after the beginning o f the 1980 fiscal year, so that aw ards w hich had already been m ade for FY 1980 w ere m ade under authority o f the C rim e C o n tro l A ct. T ransition provisions in the 1979 A ct intended to facilitate the shift to a new aw ard system provided au th o rity for L E A A to aw ard funds already appropriated “ in accordance w ith the provisions o f the p rio r A ct . . . .” H .R. Rep. No. 655, 96th C ong., 1st Sess. 80 (1979) (conf. rep.). S e* § 1301 (d), (0. (h) o f the 1979 A ct, 93 Stat. 1167, 1221. 674 some $600 million in programmatic funds awarded under Parts C and E .2 The practical necessity of devoting some portion of these funds to administration has arisen because of Congress’ tentative decision to appropriate no new monies for any formula grant awards by LEA A for FY 1981. The question is whether LEA A ’s agreements with the states can now be modified to permit states to use funds originally awarded for programmatic purposes to supplement their exhausted administra­ tive funds. The statutory provisions authorizing LEAA to make grants under Parts B, C, and E of the Crime Control Act set no relevant limits on the amount of money which LEAA can lawfully allocate to each Part.3 In theory, LEAA could, consistent with its authorizing act, enter into agreements with states under which grant funds could be used either for administration and planning or for programmatic purposes. There is, therefore, no obstacle in the authorizing statute to using some programmatic funds for administrative purposes.4 Nor do LEA A ’s appropriation statutes constrain it in this regard. LEA A ’s is a lump sum appropriation, and as such can be used for any purpose consistent with the purposes of the authorizing statute. See, e.g., In re Newport News Shipbuilding & Drydock Co., 55 Comp. Gen. 812, 819-21 (1976). An agency’s representation to Congress as to how it proposes to allocate appropriated funds is legally binding on the agency only to the extent that its proposed allocation finds its way into the language of the appropriation statute itself. Nothing in the language of LEA A ’s appropriations acts for the past three years suggests that funds awarded under Part B for administrative expenses could not be in­ creased by agreement between LEAA and a particular state, or that obligated funds originally earmarked for programmatic purposes could not in the same manner be shifted to administration if necessary. In sum, we see no bar either in the authorizing statute or the appro­ priations acts to LEA A ’s entering into a modification of its grant agreements whereby the states will be permitted to use funds previously designated for programmatic purposes to accomplish necessary adminis­ trative tasks. 2 Under § 520 o f the C rim e C ontrol A ct, 42 U.S.C. § 3768, funds appropriated under T itle 1 remain available for obligation until expended. U nder the term s o f L E A A ’s agreem ents w ith the states, funds not obligated by the states by the end o f the th ird .y e ar after their appropriation, revert to L E A A . 3 Section 205 o f the A ct provides for a minimum sum to be aw arded every state under Part B, w ith “ the rem ainder o f such funds available” allocated am ong the states in accordance w ith a form ula based on population. 42 U:S.C. 3725. Section 520(a) provides that the sum allocated by L E A A to Part E will be no less than 20 percent o f the am ount allocated to Part C. 42 U.S.C. § 3768(a). O th e r than these tw o provisions, how ever, there is nothing in this authorizing statute w hich obligated L E A A to allocate appropriated funds am ong Parts B, C, and E in any particular manner. 4 T he 1979 A ct does set a ceiling on funds to be allocated for adm inistrative purposes, see § 401(c)(1), 93 Stat. 1167, 1181. H ow ever, since none o f the m oney in question was appropriated under authority o f that A ct, see note 1 supra, this ceiling w ould pose no obstacle to modifying agreem ents entered into under authority o f the Crim e C ontrol Act. 675 Section 8 of the Department of Justice Appropriation Authorization Act for Fiscal Year 1980, Pub. L. No. 96-132, 93 Stat. 1040, 1046-47 (1979), contains a provision requiring each organizational component of the Department of Justice to give 15 days notice to specified congres­ sional committees of any decision to “reprogram” funds in excess of a certain amount. In the case o f LEAA, this amount is $500,000. Under the terms of the statute, notification must be given whenever funds are shifted within an agency from one “program” to another, as that term is defined in the Department of Justice’s submission to Congress in support of its authorization request. The notification requirement would apply, therefore, when LEAA shifts funds from one line item in its authorization submission to another, even though LEA A ’s appropria­ tion itself is in a lump sum.5 While the present situation could perhaps be distinguished from the more typical agency “reprogramming” action, some public action by LEA A will be necessary in any event to permit the states to accomplish the desired shift of programmatic funds. We therefore think that the appropriate congressional committees should be notified of LEA A ’s intention to take this course of action. L a r r y L . S im m s Deputy Assistant Attorney General Office o f Legal Counsel 5 This notification requirem ent is discussed in the com m ittee reports on the Justice D epartm ent's appropriation statute for 1980. See S. Rep. No. 251, 96th Cong., 1st Sess. 8 (1979); H .R . Rep. No. 247, 96th C ong., 1st Sess. 6 (1979).