Flexibilities Guidance for Applicants and Recipients of Federal Financial Assistance Directly Impacted by Hurricanes Helene and Milton

Overview

HHS recognizes the potential impact of Hurricanes Helene and Milton on the performance of financial assistance recipients located in the affected areas. On November 26, 2024, HHS issued a memorandum providing awarding agencies (including CDC) with the ability to provide administrative flexibilities to applicants and recipients in geographic areas directly impacted by Hurricanes Helene and Milton. The geographic areas directly impacted by the hurricanes are identified in the President's disaster declarations. See below.

Hurricane Helene

• Florida, September 28, 2024: FEMA-DR-4828-FL
• North Carolina, September 29, 2024: FEMA-DR-4827-NC
• South Carolina, September 29, 2024: FEMA-DR-4829-SC
• Georgia, September 30, 2024: FEMA-DR-4830-GA
• Virginia, October 1, 2024: FEMA-DR-4831-VA
• Tennessee, October 2, 2024: FEMA-DR-4832-TN

Hurricane Milton

• Florida, October 11, 2024: FEMA-DR-4834-FL

CDC's approach to the HHS administrative flexibilities is outlined below. The flexibilities are effective the date of each disaster declaration for the impacted area and are time-limited. Flexibilities 2, 3, and 4 are allowed through February 11, 2025. The remaining flexibilities are allowed through February 24, 2025 (90 days after the issuance of the HHS Memorandum). This guidance references the sections found in the Department of Health and Human Services (HHS) grant regulations at 45 CFR Part 75 and the Uniform Administrative Requirements at 2 CFR 200, which are applicable to CDC recipients. The flexibilities guidance applies to awards from CDC and ATSDR.

Most of the flexibilities listed below are addressed on a collaborative, case-by-case approach (recipients contact their assigned grants management specialist/program official for each specific award to request the specific, applicable flexibility). This is to ensure that CDC and recipients work together to consider the potential impact of the flexibility on their respective grant or cooperative agreement. When contacting CDC, recipients should state if their request was due to impacts caused by Hurricane Helene or Hurricane Milton. However, flexibilities 1, 2, 6, and 9 are broadly adopted at this time for impacted recipients and do not require separate approval from CDC. Flexibilities may be requested or applied retroactively, as needed.

As a reminder, CDC can provide similar administrative flexibilities as needed during other public health emergencies – see the CDC general guidance page for more information.

Administrative Flexibilities

1. No-cost extensions on expiring awards. (45 CFR § 75.308). CDC may proactively extend awards active at time of their respective disaster declaration, a no-cost extension for a period of up to twelve (12) months. This will allow time for recipient assessments, the resumption of many individual projects, and a report on program progress and financial status to agency staff. Project-specific financial and performance reports will be due 90 days following the end date of the extension. CDC will examine the need to extend other project reporting as the need arises.
2. Abbreviated non-competitive continuation requests. (45 CFR § 75.308). For continuation requests scheduled to come in between the date of the respective disaster declaration for the project and February 11, 2025 from projects with planned future support, CDC may accept a brief statement from recipients to verify that they are in a position to: 1) resume or restore their project activities; and 2) accept a planned continuation award. CDC will examine the need to extend this approach on subsequent continuation award start dates as recipients have an opportunity to assess the situation. Recipients should reach out to their assigned grants management specialist or program official if they anticipate the need for an abbreviated non-competitive continuation.
3. Allowability of salaries and other project activities. (45 CFR § 75.403, 45 CFR § 75.404, 2 CFR § 200.405). On a case-by-case basis, recipients may continue to charge salaries and benefits to currently active HHS awards consistent with the recipients’ policy of paying salaries (under unexpected or extraordinary circumstances) from all funding sources, Federal and non-Federal. CDC may allow other costs to be charged to federal awards necessary to resume activities supported by the award, consistent with applicable Federal cost principles and the benefit to the project. CDC may also evaluate the recipient’s ability to resume the project activity in the future and the appropriateness of future funding, as done under normal circumstances—based on subsequent progress reports and other communications with the recipient. Due to the limited funding resources under each federal award to achieve its specific public program goals, recipients must exhaust other available funding sources to sustain their workforce and implement necessary steps to save overall operational costs (such as rent negotiations) during the disaster declaration period. Recipients are required to maintain appropriate records and cost documentation as required by 45 CFR § 75.302, Financial management and standards for financial management systems and 45 CFR § 75.361, Retention requirement for records to substantiate the charging of any salaries and other project activities costs related to interruption of operations or services. Recipients should not assume additional funds will be available should the charging of cancellation or other fees result in a shortage of funds to eventually carry out the event or travel. This exception is allowed through February 11, 2025.
4. Allowability of Costs not Normally Chargeable to Awards. (45 CFR § 75.403, 45 § CFR 75.404, 2 CFR § 200.405). On a case-by-case basis, recipients may charge costs to the award such as the cancellation of events, travel, or other activities necessary and reasonable for the performance of the award, or the pausing and restarting of grant funded activities due to the disaster declaration without regard to 45 CFR § 75.403, Factors affecting allowability of costs, 45 § CFR 75.404, Reasonable costs, and 2 CFR § 200.405, Allocable costs. CDC may allow recipients to charge full cost of cancellation when the event, travel, or other activities are conducted under the auspices of the grant. Recipients should not assume additional funds will be available should the charging of cancellation or other fees result in a shortage of funds to eventually carry out the event or travel. Recipients are required to maintain appropriate records and cost documentation as required by 45 CFR § 75.403, Factors affecting allowability of costs, 45 CFR § 75.404, Reasonable costs, and 2 CFR § 200.405, Allocable costs, to substantiate the charging of any cancellation or other fees related to interruption of operations or services. Recipients should reach out to their assigned grants management specialist with questions on allowable costs. This exception is allowed through February 11, 2025.
5. Prior approval requirement waivers. (45 CFR § 75.407). On a case-by-case basis, CDC may waive prior approval requirements as necessary to effectively address the response. All costs charged to federal awards must be consistent with federal cost policy guidelines and the terms of the award, except where specified in this notice of administrative relief.
6. Exemption of certain procurement requirements. (45 CFR §§ 75.326 through 75.335). To the extent authorized by applicable federal law, CDC may waive the procurement requirements contained in 45 CFR §§ 75.326 through 75.335 to ensure expedient responses to the major disaster events. Recipients will still need to otherwise follow their agency procurement process. Recipients must document all procurement actions and maintain appropriate documents and records to support the charges against their federal awards. Recipients may be asked to provide that documentation for review.
7. Extension of financial, performance, and other reporting. (45 CFR § 75.341, 45 CFR § 75.342). On a case-by-case basis, CDC may allow recipients to delay submission of financial, performance and other reports up to six (6) months beyond the normal due date. If CDC allows such a delay, recipients will continue to draw down federal funds without the timely submission of these reports. However, these reports must be submitted at the end of the postponed period. In addition, CDC may waive the requirement for recipients to notify the agency of problems, delays or adverse conditions related to the hurricanes on an award by award basis (45 CFR § 75.342(d)(1)).
8. Extension of currently approved indirect cost rates. (45 CFR § 75.414). On a case-by-case basis, CDC may allow recipients to continue to use the currently approved indirect cost rates (i.e. predetermined, fixed, or provisional rates) to recover their indirect costs on Federal awards. CDC may approve recipient requests for an extension on the use of the current rates for one additional year without submission of an indirect cost proposal. CDC may also approve recipient requests for an extension of the indirect cost rate proposal submission to finalize the current rates and establish future rates. Recipients should contact Cost Allocation Services.
9. Extension of closeout. (2 CFR § 200.344). CDC may allow the recipient to delay submission of any pending financial, performance and other reports required by the terms of the award for the closeout of expired projects, provided that proper notice about the reporting delay is given by the recipient to the agency. This delay in submitting closeout reports may not exceed one year after the award expires.