On September 15, 2011, Director Jacob L. Lew issued memorandum M-11-34. In M-11-34, Director Lew notes that, “[o]n February 17, 2009, the President signed into law the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5 (“Recovery Act”).” He further states the following:

Nearly 85 percent of Recovery funds have now been paid out and the vast majority of remaining funds have already been obligated for projects that communities are counting on for job creation. Despite the rapid pace of spending of Recovery Act funds over the past 30 months, there remain billions in discretionary Recovery Act funds that, although they have been obligated, have not yet been outlayed. In light of the current economic situation and the need for further economic stimulus, it is critical that agencies spend these remaining funds as quickly and efficiently as possible.

As a result, the following is directed:

. . . subject to certain exceptions, Federal agencies are directed to take steps to complete Recovery Act projects by September 30, 2013. This new policy would compress the period of availability for the bulk of remaining funds in discretionary grant programs into the next two years.

To see the complete version of M-11-34, go to http://www.whitehouse.gov/sites/default/files/omb/memoranda/2011/m11-34.pdf