On November 17, 1999, Program Letter 99-6 informed all programs that LSC would change the disbursement schedule for grant checks beginning in the year 2000, so as to issue one check each month for 1/12 of the total grant amount, instead of issuing the first check in January for 2/12 of the grant amount and not issuing a check in December.

On December 6, 1999, Program Letter 99-07 was issued. Program Letter 99-7 postponed implementation of Program Letter 99-6 until January 2001.

During the last year many grantees have shared with LSC staff their concerns about the implications and impact, upon grantees, of Program Letter 99-6. LSC has carefully reviewed these concerns in terms of the proposed change in the policy of providing two months funding to grantees in January of each year.

Program Letters 99-6 and 99-7 are hereby rescinded. All grantees eligible to receive a full year's funding will receive their January and February grant funds together in a single check at the beginning of the grant term beginning with 2001. Grantees subsequently will receive their March through December checks on or about the beginning of each preceding month and receive no grant check in the month of December.

In order to address those situations that have occurred within the last several years in which legal services programs who cease to receive LSC funding at the end of a grant year and refuse or otherwise fail to use funding received for the month of December to fulfill their close-out or other legal obligations, LSC will incorporate into each grantees' Notification Of Grant Award a new grant condition. This new grant condition will allow LSC to hold a grantee's November check if a competition is pending or if LSC has reason to believe that it may not award another grant to a grantee.