In response to the Supreme Court’s decision in Dobbs v. Jackson, we have received many calls about how safety net, grant-funded organizations, such as community health centers, can provide elective abortions or other activities outside the scope of their federal funding. The majority of the presentation will focus on the concept of establishing and maintaining activities outside of the federally-supported project (i.e., “other lines of business”). 

Using elective abortions as an example, our speakers will discuss the Hyde Amendment and other appropriation riders, what they are and how they work, but will not delve into the Dobbs decision. We will then address how grant-funded entities can provide elective abortions or other services that cannot be paid for with federal grant funds and are not subject to federal grant requirements.

Focusing on the Health Center Program, we will address cost allocation requirements with concrete examples, federal interest considerations whether real property, equipment, or supplies, program income, and other legal and practical considerations. While abortion has some unique attributes and risk given that the Appropriations Act explicitly prohibits the use of HHS grant funds for elective abortion, the legal and accounting concepts covered in the webinar are ostensibly relevant to any “other line of business.” We will touch upon the restrictions on using excess program income under the health center program (i.e., must further the project objectives and be otherwise permitted under Section 330) and will highlight that excess program income can be used to support other lines of business that satisfy such criteria. The presenters will summarize strategies, key areas of risk, and potential pitfalls.