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S. 2056: Stop the Outlay of Payments Act

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The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Jun 15, 2021.

Stop the Outlay of Payments Act

This bill prohibits the award of federal funds to entities that have had prior awards suspended or terminated due to certain legal violations and that have failed to take necessary remedial action.

Specifically, the bill requires federal agencies to notify the Office of Management and Budget (OMB) within 120 days of suspending or terminating any portion of a federal award to a recipient for failure to comply with (1) the terms and conditions of the award, (2) a federal law or regulation, or (3) a request by the agency making the award for information or materials relating to that award.

The OMB must maintain an up-to-date list of suspended entities on its website.

An agency may not make a federal award or disburse funds under an award to a suspended entity until that entity remedies the reason for the suspension or termination, with specified exceptions.