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"The federal grants process needs to be simpler and less costly and needs to reflect today's technology. This plan will help us accomplish these goals," Secretary Thompson said. "It reflects a true partnership between the federal government and the public, and starts us on a new course for grants administration."

Prepared under HHS leadership by the 26 federal agencies that award grants, this initial plan reflects a common commitment to conduct business in new ways that will enhance the performance of federal grants programs and reduce administrative costs and other burdens to conserve the resources for both grantees and the public. HHS awards roughly half of the $325 billion in grants issued each year under more than 600 federal programs.

HHS serves as the lead agency in the Federal Grant Streamlining Program, which developed the plan and submitted it to Congress today as required by the Federal Financial Assistance Management Improvement Act of 1999. While serving as governor of Wisconsin, Secretary Thompson testified before Congress in support of the legislation.

Once implemented, the plan will make it easier for states, universities, non-profit organizations and other businesses to apply for and take advantage of federal programs involving grants and cooperative agreements. For instance, under the plan:

• The plan will substantially reduce the amount of data and information required for grant applications and reports and will reduce the number of required forms. Information will be presented in plain language to make it easier for applicants and grantees to understand.

• New technology and electronic processes will be incorporated in the grants process, reducing the need for agencies to rely on paperwork to manage these programs.

• Federal agencies will conduct business in a consistent way for programs that serve similar purposes. Agencies will work together to obtain coordinated input from affected stakeholders and to plan and systematically implement grant administration reforms.

Federal agencies have already begun to implement some of the elements of the plan, which represents a long-term strategy to reinvent and improve the grants management processes now in place at each of the affected agencies.

"Tremendous cooperation between the agencies and the Office of Management and Budget staff is what enabled us to provide this ambitious plan in a timely manner to Congress," Secretary Thompson said. "This shows how much we can accomplish when federal agencies work together to simplify and streamline our efforts to better serve the public."

The initial plan will be available shortly at www.financenet.gov

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