Department of Justice

Reduce Fraud and waste in Federal Grants

To reduce Fraud and Waste in Federal Grant making, require succesfull applicants to participate in matching fund based opportunities. It requires the applicant to put some skin in the game and provides an indication of the fiscal capacity and responsibility. Think of it like a housing loan; no money down? More bad loans. 20% down, fewer bad loans. many programs require matching funds. However, more of them do not. It puts the emphasis on applicants that show they can manage their own money who have a better probability of managing public funds as a well. It makes the process a partnership and not a federal handout or entitlement. This should/could be applied to all grant programs regardless of sponsoring agency. However, it should not be applied to non-grant assistance programs such as Student Loan guarantees. It is aimed squarely at non-profits, state/local/tribal governments and NGO's.

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Idea No. 2844