Nondiscrimination in Foreign Assistance, 3583-3587 [2024-01059]

Agencies

• DEPARTMENT OF STATE

[Federal Register Volume 89, Number 13 (Friday, January 19, 2024)]
[Proposed Rules]
[Pages 3583-3587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01059]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 89, No. 13 / Friday, January 19, 2024 / 
Proposed Rules

[[Page 3583]]



DEPARTMENT OF STATE

2 CFR Part 602

[Public Notice: 12059]
RIN 1400-AF66


Nondiscrimination in Foreign Assistance

AGENCY: Department of State.

ACTION: Notice of proposed rulemaking, request for comment.

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SUMMARY: The Foreign Assistance Act of 1961 (FAA) and other related 
statutes such as the FREEDOM Support Act, the Migration and Refugee 
Assistance Act of 1962, and the SEED Act of 1989, authorize the U.S. 
Department of State (Department) to provide foreign assistance that 
seeks to support efforts that would have the effect of protecting and 
promoting U.S. security, prosperity, and democratic values and shape an 
international environment to improve the lives of people around the 
world. To implement the Department's expectation of nondiscrimination 
against beneficiaries of Department-funded foreign assistance 
activities, the Department is proposing to add a new award term 
entitled ``Nondiscrimination in Foreign Assistance.'' The proposed 
award term expressly states that recipients and subrecipients receiving 
Department-funded foreign assistance funds must not discriminate on 
specified bases against beneficiaries and potential beneficiaries or in 
certain employment decisions involving persons employed in the 
performance of the grants and funded in whole or in part with foreign 
assistance funds except where target populations are specified in the 
relevant Federal award.

DATES: The Department will accept comments until March 19, 2024.

ADDRESSES: Submit comments, identified by title of the action and 
Regulatory Information Number (RIN) by any of the following methods:
     Visit the Regulations.gov website at: https://www.regulations.gov and search for the Regulatory Information Number 
(RIN) 1400-AF66 or docket number DOS-2023-0015.
     Email: [email protected]. You must include RIN 
1400-AF66 in the subject line of your message.
     All comments should include the commenter's name, the 
organization the commenter represents (if applicable), and the 
commenter's address. If the Department is unable to read your comment 
for any reason, and cannot contact you for clarification, the 
Department may not be able to consider your comment. After the 
conclusion of the comment period, the Department will publish a Final 
Rule that will address relevant comments as expeditiously as possible.
     For a summary of this rulemaking, please go to 
www.regulations.gov/DOS-2023-0015.

FOR FURTHER INFORMATION CONTACT: Office of the Procurement Executive, 
Federal Assistance Division, [email protected], (202) 890 
9795.

SUPPLEMENTARY INFORMATION: The inclusion and equitable treatment of all 
individuals, organizations, and persons relevant to Department foreign 
assistance programs is critical to achieving effective, comprehensive, 
and sustainable foreign assistance results because it enhances the 
participation, contributions, and access of the target population. 
Because of this premise, which underpins all of the Department's 
programs, the Department seeks to ensure access for all eligible 
beneficiaries of the target population within the scope of its foreign 
assistance grants and cooperative agreements without discrimination. 
The Department is embedding equity across its foreign affairs work and 
raising the visibility of inequities globally by providing equal 
opportunities for all eligible individuals, including members of 
minority groups and members of other underserved communities, through 
its foreign assistance programs. The Department seeks to improve the 
lives of people around the world by being inclusive and equitable in 
its foreign assistance efforts, including its evaluation of responses 
to requests for applications, notices of funding opportunities, etc. 
(``applications'').
    The Department is committed to a nondiscrimination policy in its 
programs and activities and welcomes applications irrespective of--
race, ethnicity, color, religion, sex, gender, sexual orientation, 
gender identity or expression, sex characteristics, pregnancy, national 
origin, disability, age, genetic information, indigeneity, marital 
status, parental status, political affiliation, or veteran's status. 
The Department seeks to ensure that applications for foreign assistance 
that demonstrate that the recipients of foreign assistance would not, 
in implementation of a potential award, discriminate against any 
beneficiaries of such foreign assistance funds, based on any of the 
factors listed above unless otherwise expressly authorized in the award 
or otherwise required by U.S. law in implementation of a potential 
award. Discrimination in implementation of an award could include such 
actions as withholding, adversely impacting, or denying equitable 
access to the benefits provided through the award.
    Establishing clear and meaningful nondiscrimination protections in 
Department foreign assistance awards advances U.S. foreign policy by 
ensuring that U.S. foreign assistance is inclusive and equitable by 
reaching all intended beneficiaries and efficiently accomplishing its 
intended objectives. Moreover, in the judgment of the Department of 
State, U.S. funding is less effective and efficient when discrimination 
prevents assistance from reaching those who might most benefit from 
such assistance--which hinders U.S. foreign policy by excluding 
individuals that the United States intended to receive such assistance.
    Nondiscrimination protections also promote equality in the 
administration of foreign assistance by requiring award recipients to 
comply with a uniform nondiscrimination standard. Nondiscrimination 
protections send a strong signal to people around the world that equity 
and inclusion are values that the United States takes seriously. They 
complement and affirm other commitments to equity in U.S. foreign 
policy, maximizing their coherence and effectiveness.
    Nondiscrimination principles and protections are essential in 
protecting and advancing the human rights of all persons and ensuring 
equitable access to Department foreign assistance programs. Recipients 
must adhere to this requirement by performing the activities as 
outlined in the Federal award.

[[Page 3584]]

    In recent years, the U.S. government has issued multiple policy 
pronouncements emphasizing equity, fairness, and human dignity. 
Effective nondiscrimination protections for beneficiaries of foreign 
assistance are a means toward achieving these objectives. For example, 
in 2021, the President issued Executive Order (E.O.) 13985 on 
``Advancing Racial Equity and Support for Underserved Communities 
Through the Federal Government''; and in 2023, the President issued 
E.O. 14091, ``Further Advancing Racial Equity and Support for 
Underserved Communities Through the Federal Government.'' Furthermore, 
in 2011, the President issued E.O. 13563, ``Improving Regulation and 
Regulatory Review,'' which, in addition to quantitative factors, 
advised that the qualitative values of equity, fairness, and human 
dignity are important considerations in agencies' rulemaking.
    This rulemaking proposes to revise 2 CFR part 600 to add an award 
term at Sec.  602, entitled ``Nondiscrimination in Foreign 
Assistance.'' The term, applicable to all solicitations, Federal 
awards, and subawards awarded with Department of State foreign 
assistance funds, prohibits recipients and subrecipients from 
discriminating against beneficiaries or potential beneficiaries (i.e., 
those individuals intended to receive the benefits of the award except 
where target populations are specified in the relevant Federal award) 
or persons employed in the performance of the award on the basis of any 
listed characteristics not expressly stated in the award.
    The purpose of this proposed rulemaking is to ensure effective 
implementation of foreign assistance programs consistent with U.S. 
foreign policy and the purposes of the FAA. Section 101 of the FAA 
provides that: ``[T]he Congress reaffirms the traditional humanitarian 
ideals of the American people and renews its commitment to assist 
people in developing countries to eliminate hunger, poverty, illness, 
and ignorance.'' 22 U.S.C. 2151(a).
    The main effect of the proposed award term is to ensure that the 
Department's policy and practice of nondiscrimination in planning 
foreign assistance projects and activities is followed through to 
completion by the recipients that implement them. Its impact on 
recipients is to require them to refrain from the discrimination 
described in the term.
    Under the statutory regime governing foreign assistance, and 
consistent with his responsibilities regarding the conduct of U.S. 
foreign affairs, the President has broad discretion to set the terms 
and conditions on which the United States provides such assistance. 
Many of the authorities provided under the Foreign Assistance Act of 
1961, and similar statutes, explicitly allow for the provision of 
assistance ``on such terms and conditions as [the President] may 
determine.'' See, e.g., section 104(c)(1) of the FAA (22 U.S.C. 
2151b(c)(1)) (health assistance); section 481(a)(4) of the FAA (22 
U.S.C. 2291(a)(4)) (counternarcotics and anti-crime assistance); 
section 531 of the FAA (22 U.S.C. 2346) (assistance to promote economic 
or political stability); section 541(a) of the FAA (22 U.S.C. 2347) 
(International Military Education and Training assistance); section 551 
of the FAA (22 U.S.C. 2348) (Peacekeeping Operations); section 571 of 
the FAA (22 U.S.C. 2349aa) (anti-terrorism assistance); see also 
section 2(c)(1) of the MRAA; section 201 of the SEED Act of 1989 
(amending the FAA by inserting, inter alia, section 498b(i))).
    The FAA provides that ``[t]he President may exercise any functions 
conferred upon him by this Act through such agency or officer of the 
United States Government as he shall direct. The head of any such 
agency or such officer may from time to time promulgate such rules and 
regulations as may be necessary to carry out such functions. . . .'' 22 
U.S.C. 2381(a). The Secretary of State exercises authorities under the 
FAA as delegated by the President in Executive Order 12163, dated 
September 29, 1979, as amended. That includes the President's authority 
to ``issue and enforce regulations determining the eligibility of any 
person to receive funds made available under'' the FAA. 22 U.S.C. 
2381(b).
    These proposed rules fall within the Department's authority, 
delegated to it by the President, to set conditions on the provision of 
foreign assistance, including on the implementers of such assistance. 
Courts have repeatedly recognized that the President has broad 
discretion in the conduct of foreign affairs to allocate foreign 
assistance funding for particular programs and to set the conditions on 
U.S. funding to implementers of those programs. See, e.g., DKT Memorial 
Fund v. USAID, 887 F.2d 275, 282 (D.C. Cir. 1989); Planned Parenthood 
Federation of America v. USAID, 915 F.2d 59 (2d Cir. 1990); Center for 
Reproductive Law and Policy v. Bush, 304 F.3d 183 (2d Cir. 2002). These 
courts recognized the President's broad discretion to allocate 
assistance funding for particular programs and to set the conditions on 
U.S. funding to non-governmental implementers of those programs. See, 
e.g., Planned Parenthood v. USAID, 838 F.2d 649, 654 (2d Cir. 1988) (in 
carrying out the policies under the Foreign Assistance Act, ``AID has 
`broad discretionary power' to decide which, among numerous competing 
projects, will be given family planning funds''); DKT, 887 F.2d at 282 
(``President acted under a congressional grant of discretion as broadly 
worded as any we are likely to see. . . .'').
    Moreover, the Secretary has the authority to promulgate such rules 
and regulations as may be necessary to carry out his functions and the 
functions of the Department of State. See 22 U.S.C. 2651a(a)(4). This 
rule provides an award requirement for award recipients to refrain from 
undermining the objectives, terms, and conditions of foreign assistance 
funded activities by engaging in conduct that interferes with its 
delivery to intended beneficiaries. Under its grantmaking authority, 
the Department awards grants in the execution of foreign assistance. 
Prudent and responsible exercise of the Department's foreign assistance 
and grantmaking authority requires that award terms ensure that foreign 
assistance reaches its intended beneficiaries and is not thwarted by 
discrimination on the bases covered in this rule. In addition to the 
Department's authority to promulgate regulations under the FAA, 
described above, 2 CFR 200.211(c), (d), and (e) also expressly 
authorize the agency to incorporate in an award general terms and 
conditions; Federal awarding agency, program, or Federal award specific 
terms and conditions; and Federal awarding agency requirements.
    Finally, in the event that any portion of this the proposed rule as 
finalized is declared invalid, the Department intends that the various 
aspects be severable; the Department would intend the remaining 
features of the policy to stand.

Regulatory Analyses

Administrative Procedure Act

    Pursuant to the Administrative Procedure Act (APA), this proposed 
rule is published for public comment for a period of 60 days, 
notwithstanding the fact that this rule relates to grants and therefore 
is not subject to 5 U.S.C. 553. See 5 U.S.C. 553(a)(2).).

Executive Orders 12866 (Regulatory Planning and Review), and 13563 
(Improving Regulation and Regulatory Review), and 14094 (Modernizing 
Regulatory Review)

    Executive Orders (E.O.s) 12866, 13563, and 14094 direct agencies to 
assess the costs and benefits of the

[[Page 3585]]

intended regulation. E.O. 13563 allows that in making this assessment, 
an agency ``may consider (and discuss qualitatively) values that are 
difficult or impossible to quantify, including equity, human dignity, 
fairness, and distributive impacts.'' The Department has submitted this 
rulemaking to the Office of Information and Regulatory Affairs (OIRA) 
for review. OIRA has designated this rulemaking a ``significant 
regulatory action'' under E.O. 12866, as amended.
    This rule provides a benefit by promoting nondiscrimination in 
Department of State foreign assistance, which itself promotes 
programmatic efficiency, with very little additional administrative 
burden anticipated for the affected entities, which are Department 
recipients and subrecipients. It does not require them to carry out 
activities beyond those in their cooperative agreements and grants; it 
does not ask them to alter the manner in which they conduct the work as 
set out in their awards. The Department anticipates that the benefits 
of the proposed rule are realized by (1) ensuring that grant 
solicitations and resulting awards clearly notify that recipients and 
subrecipients must not discriminate against beneficiaries and potential 
beneficiaries of foreign assistance or in relation to employment 
decisions to support performance of the award; (2) avoiding proposal 
evaluation costs arising from grantees who are unwilling to provide 
assistance to all intended beneficiaries; (3) helping to ensure that 
foreign assistance funded activities reach intended beneficiaries and 
are not undermined by discriminatory exclusion on the bases identified 
in the rule. If, for example, an award specified the provision of food 
parcels in a certain community, the grantee could not, on its own, 
decide that only certain members of that community should receive the 
food parcels or that certain members should be excluded. This rule 
makes it clear at the inception of an award solicitation and any 
resulting award the grantee is obligated to provide services and 
supplies without excluding beneficiaries on the bases stated in the 
rule.
    Potential costs the Department identifies for recipients and 
grantees are for minimal training and implementation guidance, to the 
extent that recipients and grantees do not already proscribe 
nondiscrimination as part of the normal conduct of their business 
operations, and potential changes in hiring practices for certain 
employees hired to support performance of the award. For grantees/
recipients and subrecipients, potential costs could include creation of 
policies and procedures and training on implementation. The Department 
requests comment on costs of compliance with the provisions of this 
proposed rule, including estimates of hourly burdens and wages of 
employees that may be required to implement the rule, should it be 
finalized.
    Including this clause in all new grants and cooperative agreements 
funded by Department of State foreign assistance provides an explicit 
requirement that the Department's recipients and grantees not 
discriminate against any designated group or individual (except as 
provided in the award) and is particularly important in countries where 
stigma and discrimination toward certain groups is tolerated or 
officially endorsed by the government. The benefits of the rule would 
include expressly reinforcing notions of equity, fairness, and human 
dignity under Federal Government grants and cooperative agreements 
internationally.

Regulatory Flexibility Act

    Congress enacted the Regulatory Flexibility Act of 1980, as 
amended, 5 U.S.C. 601-612, to ensure that Government regulations do not 
unnecessarily or disproportionately burden small entities. It requires 
a regulatory flexibility analysis if a rule is subject to the notice-
and-comment provisions of the APA and would have a significant economic 
impact, either detrimental or beneficial, on a substantial number of 
small entities. This rule is exempt from the notice and comment 
requirements of the APA, as a matter related to grants. See 5 U.S.C. 
553(a)(2). The Department nonetheless provides the following 
information for the information of the public.
    The requirement this rule would impose on small businesses is no 
different than the requirement imposed on other entities: cooperative 
agreements and grants will include an award term clause requiring them 
not to discriminate in the employment of persons engaged directly in 
the performance of the Department's foreign assistance cooperative 
agreements and grants and not to discriminate with respect to the 
intended beneficiaries of U.S. foreign assistance except as provided in 
the award. For example, an award might be specifically for businesses 
owned by women; in such a case, it would be permissible to 
``discriminate in favor'' of women-owned businesses. We do not estimate 
that this will impose a significant additional cost on recipients or 
subrecipients beyond adding a brief reminder or discussion of this 
requirement to existing trainings on business ethics and conduct that 
they provide to their staff. The Department requests comment on this 
assessment.
    The employees of small businesses will be expected to be mindful of 
the principles of equity, fairness, and human dignity when performing 
the work funded by taxpayer dollars, as they have always been. The 
Department anticipates that the additional effort required by small 
businesses as a result of this proposed rule is de minimis and is not 
likely to impose more than a negligible cost.
    In light of the above analysis, the Department certifies that this 
proposed rule would not have a significant economic impact on a 
substantial number of small entities. The Department welcomes comment 
on any of its assessments in this section.

Unfunded Mandates Act of 1995

    The Unfunded Mandates Act of 1995 requires agencies to prepare 
several analytical statements before proposing any rule that may result 
in annual expenditures of $100 million or more in State, local, or 
Indian Tribal governments or the private sector. Since this final rule 
will not result in expenditures of this magnitude, the Department 
certifies that such statements are not necessary.

Executive Orders 12372 and 13132--Federalism

    This regulation will not have substantial direct effects on the 
states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with section 6 
of Executive Order 13132, it is determined that this rule does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement. The 
regulations implementing E.O. 12372 regarding intergovernmental 
consultation on Federal programs and activities do not apply to this 
regulation.

Executive Order 13175--Consultation With Tribal Governments

    The Department has determined that this rulemaking will not have 
Tribal implications, will not impose substantial direct compliance 
costs on Indian Tribal governments, and will not preempt Tribal law. 
Accordingly, the requirements of E.O. 13175 do not apply to this 
proposed rule.

[[Page 3586]]

Paperwork Reduction Act

    The Department believes that the number of respondents submitting 
reports pursuant to this rulemaking will be low, possibly under the 
``10 respondents per year'' that would trigger the Paperwork Reduction 
Act. Nevertheless, the Department provides the following information, 
using a figure of ``10 respondents'' to calculate burden. The 
Department anticipates that the burden per response would be one hour, 
yielding a total burden of 10 hours for this rulemaking. The Department 
invites public comment on these figures.
    Title of Information Collection: Nondiscrimination in Foreign 
Assistance.
    OMB Control Number: 1405-XXXX.
    Type of Request: New collection.
    Originating Office: Department of State, A/OPE.
    Form Number: No form.
    Respondents: Offerors and awardees of Department of State foreign 
assistance.
    Estimated Number of Respondents: 10.
    Estimated Number of Responses: 10.
    Average Time per Response: One hour.
    Total Estimated Burden Time: 10 hours.
    Frequency: On occasion.
    Obligation to Respond: Mandatory.

List of Subjects in 2 CFR Part 602

    Administrative practice and procedure, Grant programs.

    For the reasons set forth above, the Department of State proposes 
to add part 602 to title 2 of the Code of Federal Regulations to read 
as follows:

PART 602--NONDISCRIMINATION IN FOREIGN ASSISTANCE

Sec.
602.10 Purpose of this part.
602.20 Policy.
602.30 Waiver.
602.40 Award term.
602.50 Referral.

    Authority: 5 U.S.C. 301; 22 U.S.C. 2651a, 22 U.S.C. 2151, 22 
U.S.C. 2451, 22 U.S.C. 1461, 2 CFR part 200.


Sec.  602.10  Purpose of this part.

    This part establishes policy and an award term for Federal awards 
subsidized in whole or in part by Department of State foreign 
assistance funds that states that recipients and subrecipients must not 
discriminate against beneficiaries and potential beneficiaries of 
foreign assistance or in relation to employment decisions to support 
performance of the award, in any way that is contrary to the scope of 
the activity as defined in the Federal award.


Sec.  602.20  Policy.

    (a) Nondiscrimination is essential in protecting and advancing the 
human rights of all persons and ensuring equitable access to Department 
of State federally funded foreign assistance programs. The Department 
of State is committed to a policy of non-discrimination on the basis of 
race, ethnicity, color, religion, sex, gender, sexual orientation, 
gender identity or expression, sex characteristics, pregnancy, national 
origin, disability, age, genetic information, indigeneity, marital 
status, parental status, political affiliation, or veteran's status.
    (b) In each Federal award (e.g., grant or cooperative agreement) 
under which funding is provided to a non-Federal entity or a Foreign 
Public Entity (such as a public research university, public hospital, 
etc.), the Department will include an award term that authorizes action 
up to and including termination of the award, without penalty, if the 
recipient or a subrecipient discriminates, and fails to remedy in a 
manner reasonably acceptable to the Department, on the basis of race, 
ethnicity, color, religion, sex, sexual orientation, gender, gender 
identity or gender expression, sex characteristics, pregnancy, national 
origin, disability, age, genetic information, indigeneity, marital 
status, parental status, political affiliation, or veteran's status or 
any factor not expressly stated in the award, against:
    (1) any beneficiary or potential beneficiary of the foreign 
assistance provided in performance of the award, such as, but not 
limited to, by withholding, adversely impacting, or denying equitable 
access to the benefits of foreign assistance; or
    (2) any employee, agent, or candidate for a position, who is or 
will be engaged directly in the performance of this award and whose 
work will be subsidized in whole or in part by Federal foreign 
assistance funds under this award, unless expressly permitted by 
applicable U.S. law.


Sec.  602.30  Waiver.

    (a) The Grants Officer, with written concurrence from the Bureau's 
Assistant Secretary, Chief of Mission, or other similar management 
units may waive the application of the requirements at paragraph (a)(2) 
of Sec.  602.40, Nondiscrimination in Foreign Assistance, if it is 
determined to be in the best interest of the U.S. government. Such 
determinations will take into account the totality of the 
circumstances, including, but not limited to, whether the waiver is 
requested as an accommodation to comply with applicable foreign laws, 
edicts, or decrees.
    (b) The recipient shall submit any request for a waiver of the 
requirements of the paragraph at Sec.  602.40(a)(2) in writing to the 
Grants Officer, and with sufficient justification for a determination, 
prior to award or thereafter by mutual agreement between the parties.
    (c) If approved pursuant to this section, the Grants Officer shall 
specifically denote the inapplicability of the paragraph at Sec.  
602.40(a)(2) in the Federal award.
    (d) Upon making a determination to waive the requirements at Sec.  
602.40(a)(2) pursuant to this section, the Grants Officer shall notify 
the Assistant Secretary of the Bureau for Democracy, Human Rights, and 
Labor, or their designee in writing within 30 days.
    (e) Nothing in any such waiver approved pursuant to this section 
shall negate any of the other requirements of Sec.  602.40.


Sec.  602.40  Award term.

    The following term will be incorporated in Department of State 
Federal awards as applicable:

Nondiscrimination in Foreign Assistance (Date)

    a. Department of State policy requires that the recipient or 
grantee not discriminate on the basis of race, ethnicity, color, 
religion, sex, gender, sexual orientation, gender identity or 
expression, sex characteristics, pregnancy, national origin, 
disability, age, genetic information, indigeneity, marital status, 
parental status, political affiliation, or veteran's status or any 
factor not expressly stated as permissible in the award, against:
    1. any beneficiary or potential beneficiary of the foreign 
assistance provided in performance of the award, such as, but not 
limited to, by withholding, adversely impacting, or denying equitable 
access to the benefits of foreign assistance; and
    2. any employee, agent, or candidate for a position, who is or will 
be engaged directly in the performance of this award and whose work 
will be subsidized in whole or in part by Federal foreign assistance 
funds under this award, unless expressly permitted by applicable U.S. 
law.
    b. Nothing in this award term is intended to limit the ability of a 
recipient to target activities toward the assistance needs of certain 
populations as defined in the award.

[[Page 3587]]

    c. The recipient shall post in conspicuous places available to 
employees and beneficiaries in their predominant languages the notices 
to be provided by the Department of State regarding the 
nondiscrimination policy implemented in this award term.
    d. The recipient shall notify beneficiaries and prospective 
beneficiaries that the recipient is prohibited from discriminating on 
the basis of race, ethnicity, color, religion, sex, gender, sexual 
orientation, gender identity or expression, sex characteristics, 
pregnancy, national origin, disability, age, genetic information, 
indigeneity, marital status, parental status, political affiliation, or 
veteran's status. The notice shall include information (telephone 
numbers, email addresses, and mailing addresses) necessary to contact 
the Department of State Inspector General's Fraud, Waste, and Abuse 
hotline to report potential violations of this award term.
    e. The recipient shall take such action with respect to any 
subaward or contract as the Department of State may direct as a means 
of enforcing this award term, including terminating for noncompliance.
    f. The recipient shall:
    1. Notify its employees and agents of:
    i. The policy prohibiting discrimination, described in paragraph 
(a) of this award term; and
    ii. The actions that will be taken against employees or agents for 
violations of this policy. Such actions for employees may include, but 
are not limited to, removal from the award, reduction in benefits, or 
termination of employment; and
    2. Take appropriate action, up to and including termination, 
against employees, agents, or subrecipients that violate the policy in 
paragraph (a) of this clause.
    g. Notification.
    1. The recipient shall inform the Grants Officer, Grants Officer 
Representative, and the Department of State Inspector General 
immediately of:
    i. Any credible information it receives from any source (including 
host country law enforcement) that alleges an employee of the 
recipient, subrecipient entity, an employee of a subrecipient, or their 
agent has engaged in conduct that violates the policy in paragraph (a) 
of this award term; and
    ii. Any actions taken against an employee of the recipient, 
subrecipient entity, an employee of a subrecipient employee, or their 
agent pursuant to this award term.
    2. If the allegation may be associated with more than one award, 
the recipient shall inform the Grants Officer for the award with the 
highest dollar value.
    h. Remedies. In addition to other remedies available to the U.S. 
Government, the recipient's failure to comply with the requirements of 
this award term may result in:
    1. Requiring the recipient to remove an employee or subrecipient 
employee from the performance of the award;
    2. Requiring the award recipient to terminate a subaward;
    3. Suspension of award payments until the recipient has taken 
appropriate remedial action;
    4. Declining to exercise available options under the award;
    5. Termination of the award for default or cause, in accordance 
with the Department of State Standard Terms and Conditions for Federal 
Awards; or
    6. Suspension or debarment.
    i. The recipient must insert this award term, modified as 
appropriate or necessary to identify the parties, including this 
paragraph, in all subawards under this award.


(End of award term)


Sec.  602.50  Referral.

    A Department official will inform the Department's suspension and 
debarment official if an award is terminated based on a violation of a 
prohibition contained in the award term under Sec.  602.40.

Kevin E. Bryant,
Deputy Director, Office of Directives Management, Department of State.
[FR Doc. 2024-01059 Filed 1-18-24; 8:45 am]
BILLING CODE 4710-24-P