Section 1115 Grant Funding Process - Update

INFORMATION MEMORANDUM

ACF-OCSS-IM-24-04

DATE: June 10, 2024

TO: State and Tribal IV-D Agencies

SUBJECT: Section 1115 Grant Funding Process - Update

Effective October 1, 2024, tribal child support agencies are no longer eligible to apply for Section 1115 discretionary grant funding because tribal project costs are covered by Title IV-D mandatory funding. Tribal child support agencies should instead apply for a waiver to conduct experimental, pilot, or demonstration projects (see ACF-OCSS-AT-24-02 and ACF-OCSS-TDCL-24-02).

Statute and Funding

Section 1115 of the Social Security Act, 42 U.S.C. 1315, authorizes the Department of Health and Human Services to fund demonstration grants and waivers to help promote the objectives of the child support program. OCSS has up to $4 million of Section 1115 grant funding available each fiscal year, awarded competitively through a Notice of Funding Opportunity (NOFO). 

Section 1115 also authorizes OCSS to waive specific program requirements or funding restrictions for child support agencies (see ACF-OCSS-IM-24-03). OCSS will consider waiver requests that are necessary to carry out the proposed project. Recipients must follow the project parameters in the approved application. The waiver authority allows recipients to also receive Federal Financial Participation (FFP).  

Grant Opportunities

OCSS posts information about upcoming and published NOFOs on Grants.gov . The NOFO outlines the application process and requirements for the specific year and demonstration topic. State child support agencies must apply under an open NOFO on Grants.gov and can subscribe to receive email updates.

Calculating Budget Requests

OCSS NOFOs list the total amount of funding for the demonstration, the funding ceiling, and projected average award amount. Since 2020, these amounts reflect both Section 1115 and FFP funding. Applicants need not calculate 1115 and FFP shares for their projects. They may apply up to the listed ceiling according to the budget parameters of their proposal. 

Applications require a combined funding request for the total project budget that includes both 1115 and FFP funds on the SF-424 Application for Federal Assistance. Applicants must follow specific directions in the NOFO when preparing budget requests. 

Applicants should pay attention to the length of the project and budget requirements in the NOFO. Some projects may have a “fully funded” project budget, meaning the total budget is for the entire grant project period. Other demonstrations may have a multi-year project period with annual budget periods that require recipients to request a non-competitive continuation award each year. 

In ACF NOFOs, Section III.2, Cost Sharing or Matching, explains whether the grant requires shared costs or matching funds. Section 1115 grants do not require the recipient's matching funds or cost sharing. Therefore, this section of the NOFO is not applicable to the FFP allowed under these grants.

Award Notification and Management

State child support agencies receive a Notice of Award if selected. The Notice of Award will show the total project budget, which includes both 1115 and FFP funding. It also shows the total of each funding source, a breakout of funds by object class categories, and other relevant information. 

All awarded funds must be used on Section 1115 grant activities under the guidance in the NOFO and the statutory and regulatory requirements for both Section 1115 and Title IV-D funding.

Recipients should not include costs associated with a Section 1115 grant award in their normal child support program budget. Recipients must track and budget all costs for the demonstration grant separately as funds awarded under the Section 1115 grant Notice of Award. Any funds misspent under the child support program grant or the Section 1115 demonstration grant will be subject to disallowance by ACF.

Recipients may not use expenditures allocated to the Section 1115 grant award to support their regular child support program. The FFP associated with a Section 1115 grant is awarded at the start of the grant project for the budget period. Recipients should not include requests for FFP associated with the demonstration project grant on their quarterly submission of the OCSE-396 form for regular child support program funding.

Reporting and Project Management

Section 1115 grant recipients must follow all programmatic and financial reporting requirements in the NOFO for the specific demonstration project. Recipients should report on the total project budget and need not identify expenditures as Section 1115 or Title IV-D expenses. Similarly, program reports should include all grant activities in the total project budget. Demonstration project grantees must submit all financial and programmatic reports due to ACF according to deadlines in the NOFO.

REFERENCES: Section 1115 (42 U.S.C. 1315) and Title IV-D (42 U.S.C. 651, et seq.) of the Social Security Act; 45 CFR Part 304 

SUPERSEDES: IM-20-06

INQUIRIES: OCSS Division of Program Innovation, OCSS.DPI@acf.hhs.gov

Tanguler Gray
Commissioner
Office of Child Support Services