Section 203 of the Intergovernmental Cooperation Act exempts both the states and their subgrantees from accountability for interest earned on federal grant funds pending their disbursement, and such interest may thus not be recovered by the federal government.
Recovery of Interest on Advance Payments to State Grantees and Subgrantees
Date of Issuance:
Friday, February 5, 1982
Updated July 9, 2014