Comments on Lobbying Amendments to OMB Circular A-122

GAO discussed proposed amendments to Office of Management and Budget (OMB) Circular A-122. The proposed amendments would prevent contractors and grantees from engaging in lobbying activities at public expense. GAO believes that the final OMB proposal sufficiently addresses concerns about earlier versions of the amendments. A provision that would have disallowed the total cost of any activity deemed to be political advocacy has been changed to require that lobbying costs be separated on a grantee's or contractor's books from properly reimbursable costs. GAO also clarified its support for the proposed amendments, noting that it supports the initiative to establish uniform cost principles governing the separation of legitimate costs from unallowable lobbying costs.