Stop the Outlay of Payments Act

The Stop the Outlay of Payments Act requires federal agencies to notify the Office of Management and Budget (OMB) within 120 days when they suspend or terminate a portion of a federal grant, contract, or similar award due to recipient non-compliance (such as failing to follow terms, laws, or provide requested information). The OMB must then maintain a public list of all suspended entities on its website. Federal agencies are prohibited from awarding new funds or disbursing existing funds to a suspended entity until the issue causing the suspension is resolved, with limited exceptions for clerical errors or ongoing resolution agreements. This directly affects organizations, state/local governments, or individuals that receive federal funding and have been suspended for non-compliance.