OMB issued memorandum M-11-34 on September 15, 2011, which notified agencies that spending on Recovery Act awards should be accelerated to complete projects and spending by September 30, 2013. Unspent Recovery Act funds after that date will be reclaimed by the Agency. Exceptions can be granted, but are expected to be quite limited, for example, multi-year projects involving high-speed rail development.
This is being achieved through modification to the terms and conditions of existing awards. NIH published today its Guide Notice NOT-OD-12-014 announcing their policies to implement this change on their awards. NSF also published information today for grant recipients on how they will handle this change in award terms.