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Agencies Must Take Care With Recovery Funds

WASHINGTON (CN) - President Obama has ordered all department and agency heads to spend funds from the American Recovery and Reinvestment Act prudently and only if proposed projects would have a genuine impact on the nation's economy.

In a memorandum sent out this week, department and agency heads also were ordered to consult with the Office of Management and Budget if there are projects they are required by law to fund, but which they believe will not have a positive impact on the economy, to determine if such projects may be delayed or funded from other sources.

Department or agency officials also are not to listen to the views of lobbyists on the funding unless they are put in writing and posted on the recovery web site within three business days of the conversation.

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