Availability of Appropriation for Grant Modification by ACTION

ACTION requested an opinion on whether a proposed modification would, in effect, constitute a new grant that required the obligation of current fiscal year funds, or whether the prior year funds, originally obligated for the grant, may be used to fund the modification. The proposed grant modification was for the expansion of the area from which enrollees in a demonstration youth employment project are drawn to include additional county areas. Viewed as a whole, the proposed grant amendment if adopted would not create a new or separate undertaking, and would not enlarge the scope of the grant. Therefore, the proposed amendment would not require the obligation of current fiscal year funds.