1. Short title This Act may be cited as the Stop the Outlay of Payments Act . 2. Federal grants (a) Definitions In this section: (1) Agency The term agency means— (A) an Executive agency, as defined in section 105 of title 5, United States Code; and (B) an independent regulatory agency, as defined in section 3502 of title 44, United States Code. (2) Director The term Director means the Director of the Office of Management and Budget. (3) Federal award The term Federal award means a grant, subgrant, contract, subcontract, loan, award, or cooperative agreement awarded by an agency. (4) Suspended entity The term suspended entity means a recipient of a Federal award, any portion of which the head of an agency suspends or terminates for a reason described in subsection (b)(2). (b) Notification (1) In general Not later than 120 days after the date on which an agency suspends or terminates any portion of a Federal award to the recipient of the Federal award for a reason described in paragraph (2), the head of an agency shall notify the Director of the suspension or termination. (2) Reason for suspension or termination A reason for a suspension or termination of a Federal award described in this paragraph is a failure of the recipient of the Federal award to comply with— (A) the terms and conditions of the Federal award; (B) a Federal law or regulation