FAR 3.802—Statutory prohibition and requirement.
Plain-English Summary
FAR 3.802 explains the statutory ban in 31 U.S.C. 1352 on using appropriated funds to pay for lobbying or other influence activities connected with covered Federal actions. It also clarifies two important interpretive points: profit or fee from a covered Federal action is not treated as appropriated funds for this purpose, and if a person has enough non-Federal money, the Government may presume those non-Federal funds were used for otherwise unallowable influencing activities. In addition, this section identifies the required contractor/offeror paperwork: a declaration made up of both a certification and a disclosure, plus periodic disclosure updates after award. In practice, this section is the legal foundation for the anti-lobbying rules implemented through FAR 52.203-11 and FAR 52.203-12, and it matters because violations can create compliance, reporting, and award-risk issues for contractors, grantees, and other recipients of Federal funds.
Key Rules
No use of appropriated funds
A recipient of a Federal contract, grant, loan, or cooperative agreement may not use appropriated funds to pay anyone to influence or attempt to influence specified Federal officials in connection with covered Federal actions. The prohibition applies to direct and indirect lobbying-type payments tied to the covered transaction.
Covered officials and actions
The prohibition reaches attempts to influence an agency officer or employee, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress. The conduct must relate to covered Federal actions, meaning the influence activity must be connected to the Federal transaction at issue.
Profit or fee is excluded
For this subpart, 'appropriated funds' does not include profit or fee earned from a covered Federal action. That means the anti-lobbying restriction is focused on Federal appropriations, not on the contractor’s earned profit or fee as such.
Presumption about non-Federal funds
If a person can show they had enough money other than Federal appropriated funds, the Government will assume those non-Federal monies were used for any influencing activities that would have been unallowable if paid with appropriated funds. This prevents a recipient from avoiding the rule by simply mixing funds without clear tracing.
Certification and disclosure required
31 U.S.C. 1352 requires offerors to provide a declaration consisting of both a certification and a disclosure. The implementing requirements are found in FAR 52.203-11, which addresses the certification and disclosure at the offer stage, and FAR 52.203-12, which imposes the related contract clause and continuing disclosure obligations.
Periodic updates after award
The disclosure is not a one-time filing only at award. The statute and implementing clause require periodic updates after contract award, so recipients must keep their lobbying-related information current throughout performance when required by the clause.
Responsibilities
Offeror
Before award, complete the required declaration by certifying compliance and disclosing any covered payments or lobbying-related activity required by the solicitation provision. The offeror must ensure the submission is accurate, complete, and supported by internal records.
Contractor/Recipient
After award, comply with the prohibition on using appropriated funds for prohibited influence activities and provide periodic disclosure updates as required by the contract clause. The contractor must track funding sources and payments to ensure unallowable lobbying costs are not charged to appropriated funds.
Contracting Officer
Include and administer the required provision and clause, obtain the certification/disclosure package, and ensure the contractor understands the continuing update obligation. The contracting officer should also address any apparent noncompliance through normal contract administration and referral channels.
Agency
Implement the statutory requirements through the prescribed FAR provisions and maintain oversight of compliance with the anti-lobbying restrictions. The agency must ensure covered Federal actions are handled consistently with the statute and the implementing clauses.
Person paid to influence
Any consultant, lobbyist, or other paid intermediary must not be compensated with appropriated funds for prohibited influence activities connected to covered Federal actions. If paid from mixed or non-Federal sources, the payment structure must still comply with the statute and disclosure requirements.
Practical Implications
Contractors need a clear accounting trail showing which funds paid for which activities, especially when they have both Federal and non-Federal money. Without that traceability, the Government may presume non-Federal funds were used for unallowable influence activities.
The rule is broader than formal lobbying in Congress; it also covers attempts to influence agency personnel and congressional staff in connection with covered Federal actions. Teams should train business development, government relations, and proposal staff on what communications trigger the rule.
The certification/disclosure paperwork is not optional boilerplate. Missing, incomplete, or inaccurate submissions can create award delays, compliance findings, or contract administration problems.
Periodic updates mean compliance must continue after award, not just at proposal stage. Contractors should build a process to review lobbying-related payments and disclosures whenever circumstances change or at the intervals required by the clause.
Profit or fee is not treated as appropriated funds for this purpose, but that does not create a loophole to fund prohibited influence activity. Contractors should still ensure any lobbying-related costs are properly segregated and disclosed as required.
Official Regulatory Text
(a) 31 U.S.C.1352 prohibits a recipient of a Federal contract, grant, loan, or cooperative agreement from using appropriated funds to pay any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any covered Federal actions. (1) For purposes of this subpart the term "appropriated funds" does not include profit or fee from a covered Federal action. (2) To the extent a person can demonstrate that the person has sufficient monies, other than Federal appropriated funds, the Government shall assume that these other monies were spent for any influencing activities that would be unallowable if paid for with Federal appropriated funds. (b) 31 U.S.C.1352 also requires offerors to furnish a declaration consisting of both a certification and a disclosure, with periodic updates of the disclosure after contract award. These requirements are contained in the provision at 52.203-11 , Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions, and the clause at 52.203-12 , Limitation on Payments to Influence Certain Federal Transactions.