	Background

On February 18, 1986, President Ronald Reagan signed Executive Order 12549, "Debarment and Suspension." The order directed the Office of Management and Budget (OMB) to issue guidelines for its implementation, including which agencies were covered and the "government-wide criteria [for debarment and suspension] and government-wide minimum due process procedures." It further directed executive departments and agencies to issue regulations consistent with OMB's guidelines. OMB revised this rule again in 2006 and placed it in the Code of Federal Regulations as guidance. OMB Guidelines for Debarment and Suspension

OMB's government-wide guidance for debarment and suspension in federal grant programs is found at 2 C.F.R. Part 180. The provisions also apply to agency officials who have authority to enter into "covered transactions" and who have authority to debar or suspend grantees. Causes for Debarment

Agencies may debar a person for the following reasons:
"Conviction of or civil judgment for" any of the following activities: 1) Commission of fraud or another criminal offense related to "obtaining, attempting to obtain, or performing a public or private agreement or transaction;" 2) Violation of antitrust statutes (both federal or state); 3) Commission of "embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, making false claims, or obstruction of justice;" or 4) Commission of other offenses "indicating a lack of business integrity or business honesty that seriously and directly affects ... [the person's] present responsibilities;" "Violation of the terms of a public agreement or transaction so serious as to affect the integrity of an agency program;" "A nonprocurement debarment by any Federal agency taken before October 1, 1988;" "[A] procurement debarment by any Federal agency taken pursuant to 48 C.F.R. Legislation and Activities in the 111th Congress

On September 17, 2009, the House passed H.R. Organizations covered by the bill include ACORN and its known affiliates. The issue of debarment and suspension in federal grant programs was discussed during a House Oversight and Government reform hearing on March 18, 2010.
Federal agencies have general authority to debar or suspend persons from participating in federal grant programs and other nonprocurement transactions. Grounds for debarment of a federal grantee include criminal or civil convictions for various crimes including fraud, embezzlement, theft, bribery, tax evasion, and making up false claims, among others, as well as other causes indicating a person is not "presently responsible" as a federal grantee. Debarment and suspension in the context of federal grant programs is described in each agency's regulations, and such provisions may vary for individual programs depending upon the grant program's authorizing statute. Executive Order 12549, issued by President Ronald Reagan, directed the Office of Management and Budget (OMB) to issue government-wide criteria for debarment and suspension in federal grants and further directed executive departments and agencies to issue regulations consistent with OMB's guidelines. OMB's government-wide guidelines may be found at 2 C.F.R. Part 180. The issue of debarment and suspension for federal grant recipients is particularly timely given Congress's interest in the activities of the Association of Community Organizations for Reform Now ("ACORN") and its affiliates. Title VI of H.R. 3221, which was passed by the House in September of 2009, barred certain organizations (including ACORN) from receiving federal grants and contracts under certain circumstances, such as an indictment for a violation of various campaign finance or election laws. This legislation, along with similar legislative vehicles, prompted interest in the current status of debarment and suspension in the context of federal grant programs. This report discusses the background of debarment and suspension for federal grant programs, the specific rules established by OMB, and related legislation and activities in the 111th Congress.