Today, the U.S. Department of Education has issued a Dear Colleague letter reminding grantees about the prohibited use of federal grant funds for lobbying and the rules around allowable membership costs. While this isn’t a new policy, it’s an important clarification for colleges, universities, and organizations that receive federal aid.
What the Rules Say
- Federal law (31 U.S.C. § 1352): Bars use of federal funds to influence Congress or federal officials in connection with grants.
- Uniform Guidance (2 C.F.R. § 200.450 – § 200.454): Makes lobbying costs unallowable and limits payment of dues to organizations engaged in lobbying.
- Membership dues: Allowed if they support professional development or necessary activities; but not if the organization’s primary purpose is lobbying, or if it refuses to disclose its lobbying costs.
Compliance Expectations
To stay on the safe side, the Department urges grantees to:
- Exclude lobbying costs from all federal grant charges.
- Scrutinize membership dues to ensure only the non-lobbying portion is charged.
- Document everything; including cost breakdowns and justification of necessity.
- Avoid percentage-based dues tied to the size of federal grants, which are presumed unallowable.
The Bottom Line
Federal grant dollars cannot be used to pay for lobbying activities. This includes both direct lobbying efforts and indirect contributions through professional or trade organization dues. Memberships may still be allowable, but any portion of dues tied to lobbying must be excluded.
For the full announcement and DCL, please see: (GEN-25-09) Reminder Regarding Prohibited Use of Federal Grants Funds for Lobbying and Allowable Membership Costs