SB2844 104TH GENERAL ASSEMBLY

LRB104 17171 HLH 30590 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2844

Introduced 1/13/2026, by Sen. Michael W. Halpin

SYNOPSIS AS INTRODUCED:

30 ILCS 708/50
30 ILCS 708/135 new

Amends the Grant Accountability and Transparency Act. Provides that the advice and technical assistance provided to State grant-making agencies by the Governor's Office of Management and Budget for the purpose of ensuring compliance with the Act shall include training for State agency staff. Sets forth requirements for the training. Provides that a State grant-making agency that awards a grant must issue the grant agreement associated with the grant within 60 days after the grant's effective date. Sets forth requirements for the grant agreement.

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Grant Accountability and Transparency Act is amended by changing Section 50 and by adding Section 135 as follows:

(30 ILCS 708/50)

Sec. 50. State grant-making agency responsibilities.

(a) The specific requirements and responsibilities of State grant-making agencies and non-federal entities are set forth in this Act. State agencies making State awards to non-federal entities must adopt by rule the language in 2 CFR Part 200, Subpart C through Subpart F unless different provisions are required by law.

(b) Each State grant-making agency shall appoint a Chief Accountability Officer who shall serve as a liaison to the Grant Accountability and Transparency Unit and who shall be responsible for the State agency's implementation of and compliance with the rules.

(c) In order to effectively measure the performance of its recipients and subrecipients, each State grant-making agency shall:

(1) require its recipients and subrecipients to relate financial data to performance accomplishments of the award and, when applicable, must require recipients and subrecipients to provide cost information to demonstrate cost-effective practices. The recipient's and subrecipient's performance should be measured in a way that will help the State agency to improve program outcomes, share lessons learned, and spread the adoption of promising practices; and

(2) provide recipients and subrecipients with clear performance goals, indicators, and milestones and must establish performance reporting frequency and content to not only allow the State agency to understand the recipient's progress, but also to facilitate identification of promising practices among recipients and subrecipients and build the evidence upon which the State agency's program and performance decisions are made. The frequency of reports on performance goals, indicators, and milestones required under this Section shall not be more frequent than quarterly. Nothing in this Section is intended to prohibit more frequent reporting to assess items such as service needs, gaps, or capacity, as indicated by a corrective action plan or by a risk assessment.

(3) Each State grant-making agency shall, when it is in the best interests of the State, request that the Office of the Comptroller issue a stop payment order in accordance with Section 105 of this Act.

(4) Upon notification by the Grant Transparency and Accountability Unit that a stop payment order has been requested by a State grant-making agency, each State grant-making agency who has issued a grant to that recipient or subrecipient shall determine if it remains in the best interests of the State to continue to issue payments to the recipient or subrecipient.

(d) The Governor's Office of Management and Budget shall provide such advice and technical assistance to the State grant-making agencies as is necessary or indicated in order to ensure compliance with this Act. The advice and technical assistance provided to State grant-making agencies by the Governor's Office of Management and Budget shall include training for State agency staff. That training shall include the following:

(1) a review of services that are subject to the State Prompt Payment Act;

(2) an explanation of how to determine if the awardee is eligible for advance payments, reimbursement, or working capital advances; and

(3) information concerning the jurisdiction of the Court of Claims and the role and responsibilities of State grant-making agencies under the Court of Claims Act.

(e) In accordance with this Act and the Illinois State Collection Act of 1986, refunds required under the Grant Funds Recovery Act may be referred to the Comptroller's offset system.

(Source: P.A. 103-1068, eff. 3-21-25.)

(30 ILCS 708/135 new)

Sec. 135. Grant agreement specifications.

(a) A State grant-making agency that awards a grant must issue the grant agreement associated with the grant within 60 days after the grant's effective date.

(b) The grant agreement required under this Section shall include:

(1) a statement of the anticipated time during which the grantee will submit a bill or invoice to the State grant-making agency and the anticipated time during which the State grant-making agency will transmit vouchers to the Comptroller;

(2) a statement regarding whether the award of assistance is subject to the State Prompt Payment Act; and

(3) a statement indicating whether the payment methodology is advance pay, reimbursement, or working capital advance.

(c) A State agency shall not restrict indirect costs to less than 20% of the grant agreement or the federally negotiated rate, whichever is higher, unless the recipient prefers a lower rate.

(d) Pursuant to the definition of direct costs in Section 15 of this Act, a State agency shall not restrict costs that are directly related to a specific award but that would otherwise be treated as indirect costs to less than 20% of direct costs in the grant agreement unless the recipient prefers a lower rate.

(e) This Section does not apply to grants that are solely for the purpose of capital projects.

(f) This Section does not apply if the grant conflicts with requirements due to federal law or federal grant obligations.