Donald Trump recently issued a presidential memorandum directing the U.S. attorney general to investigate whether federal grant funds are being used to illegally support lobbying activities and to take appropriate enforcement action.
Although this August 28, 2025, memorandum focuses only on federal grant funds, the statute to which it cites, 31 U.S.C. 1352, is considerably broader. The statute, known as the Byrd Amendment, generally prohibits recipients of a federal contract, grant, loan or cooperative agreement (a “federal award”) from using appropriated federal funds to attempt to influence executive and legislative branch officials with respect to the award, extension, continuation, renewal, amendment or modification of a federal award. And the Byrd Amendment can apply even when a person or entity is not entering into a grant or contract directly with the federal government; sub-grantees and subcontractors who receive federal funds from a contract or grant with a private entity or state or local government are also subject to the restriction.
Importantly, the Office of Management and Budget (OMB), which implements the Byrd Amendment, has issued long-standing guidance that, to the extent a person can demonstrate that the person has sufficient permissible funds, i.e., other than federal appropriated funds, the OMB will assume that those permissible funds were spent for any influencing activities covered by the Byrd Amendment.
The Byrd Amendment also requires the disclosure on Form LLL of any outside lobbyist engaged in attempting to influence the federal action on behalf of the person, the payments made to the lobbyist and a brief description of the lobbyist’s duties.
While the scope of the attorney general’s investigation remains to be seen, the memorandum serves as a reminder to contractors and grantees to review their practices for compliance with the Byrd Amendment.
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