Reason for the Notice: This Notice provides information to applicants, grantees, and contractors of the Agency for Healthcare Research and Quality (AHRQ) regarding the salary cap limitations imposed for Fiscal Year 2020.

The Further Consolidated Appropriations Act, 2020, Public Law 116-94, signed into law on December 20, 2019, restricts the amount of direct salary which may be paid to an individual under an HHS grant, cooperative agreement, or applicable contract to a rate no greater than Executive Level II of the Federal Executive Pay Scale. Effective January 5, 2020, the Executive Level II salary level is $197,300.

According to P.L. 116-94, Sec. 202: "None of the funds appropriated in this title shall be used to pay the salary of an individual, through a grant or other external mechanism, at a rate in excess of Executive Level II."

For new awards from HHS, including NIH, the new salary cap is $197,300 effective January 5, 2020.

For awards already issued, "if adequate funds are available in the award, and if the FY2020 salary cap limitation is consistent with the institutional base salary, grantees may re-budget funds to accommodate the FY2020 salary cap effective January 5, 2020." However, "No additional funds will be provided for [these] grant awards."

For more information, read Notice NOT-HS-20-006: Salary Limitation on AHRQ FY2020 Grants, Cooperative Agreements, and Contracts

Where can I find the relevant documents: Here

Who is receiving this communication: GMs, ADFs, Centers, SPA, and Finance Staff

Whom to contact with questions: For questions pertaining to the new salary cap and its usage, please contact your SPA representative