General Services Administration--Line-Item Appropriations--Administrative Expenses

The General Counsel, General Services Administration (GSA), asked whether GSA may reserve a portion of funds, appropriated for grants in specified amounts, to pay the costs of administering the grants. We conclude that GSA may not reserve a portion of the earmarked grants to cover administrative costs. GSA should disburse any amounts previously reserved to the grantees or return such amounts to the Treasury if the grant has been closed out.