What Is Executive Order 12372 and Who Must Comply?

Executive Order 12372 is a 1982 directive, signed by President Reagan on July 14 of that year, that created the intergovernmental review process federal agencies still use to gather state and local input on certain funding proposals.¹ Whether it affects your grant application comes down to two questions: does your state participate, and is the program you are applying to one the state has chosen to review? About 20 states and territories participate, so for many applicants the order imposes no obligation at all.²

What the Order Does

The order replaced OMB Circular A-95, which had drawn criticism for imposing paperwork on local authorities without giving them real influence over federal decisions. Under EO 12372, a state can designate a single office to coordinate feedback on federal spending in its territory, rather than letting every federal agency run its own consultation. States also pick which programs they actually want to review.¹

The scope covers “federal financial assistance and direct federal development,” a broad category that includes competitive grants, formula grants, direct loans, and similar programs. Each federal agency publishes a list of which of its programs fall under the review requirement. If a program’s funding announcement does not say it is subject to EO 12372, the review does not apply.³

Does the Order Apply to Your Application?

Two conditions have to line up before you owe anything under EO 12372.

First, your state has to participate. The Office of Management and Budget maintains the official list of State Single Points of Contact (SPOCs). Participating jurisdictions include Arizona, California, Florida, Indiana, Kentucky, and Maryland, among others, along with the District of Columbia, Puerto Rico, the Virgin Islands, and American Samoa.² More than half the states have opted out entirely. In those states, you send your application directly to the federal awarding agency and skip the state-level step.⁴

Second, the specific program has to be one your state reviews. Even in participating states, not every federal grant triggers the process. Check the Notice of Funding Opportunity or Request for Applications. If it says the program is subject to EO 12372, contact your SPOC. If it says nothing about intergovernmental review, you are done. You can also cross-reference the program’s Assistance Listing Number (formerly the CFDA number) on SAM.gov, and the SPOC itself can confirm whether your program is on the state’s review list.³

How the State Review Works

Each participating state designates a SPOC to run the review. The office acts as a clearinghouse: instead of federal agencies fielding comments from dozens of county offices and planning commissions, all feedback flows through one point that consolidates it into a single state position.³

When you contact a SPOC, expect state-specific submission instructions. Some states run online portals; others still accept paper. The SPOC circulates your proposal to relevant local agencies and officials, collects their feedback, and returns a consolidated response. If nothing comes up, you may receive a clearance letter. If reviewers flag conflicts with local plans, the SPOC may ask for more information or set up a conversation to work through them.

Filling Out the SF-424

Box 19 on the Standard Form 424, the cover sheet for nearly all federal assistance applications, asks directly whether your application is subject to EO 12372 review. You select from three options: the application was made available to the state for review, the program has not been selected for review by the state, or the program is not covered by EO 12372.⁵

If your state reviews the program, submit to the SPOC at the same time you submit to the federal agency. Parallel submission keeps the state review from delaying the federal timeline. The form also asks for your Assistance Listing Number, which the SPOC uses to route the application to the right reviewers.⁵

Accuracy matters. A wrong answer in Box 19 or a missing Assistance Listing Number can create complications with the federal agency. When you are unsure, call the SPOC before you file.

Review Timeline

The state’s window depends on the type of award. For new and competitive awards, the state has 60 days from the application deadline to submit comments. For non-competing continuation awards, the window is 30 days.⁶

If the period expires without state comments, the federal agency can move ahead with its funding decision. Your project does not stall indefinitely waiting for state input. Some federal agencies still prefer to wait for state clearance after the deadline, particularly for large or politically sensitive projects.

What Federal Agencies Must Do With State Comments

Once a SPOC submits comments, federal agencies cannot ignore them. Section 2 of the order requires federal officials to “make efforts to accommodate” the concerns raised by state and local elected officials, and when an agency cannot accommodate those concerns, it must explain its reasons in a timely manner.¹

Read that obligation precisely. The duty is to make a genuine effort and then explain, not to comply with whatever the state asks for. A federal agency can and sometimes does override state objections when it concludes the project serves a strong federal interest. It just has to put the reasoning in writing and send that explanation to the SPOC.

The order also directs federal agencies to communicate with state and local officials early in the planning process, not only after an application arrives. Early consultation is meant to surface problems before they harden into deal-breakers.¹

Practical Notes for Applicants

Check the SPOC list before you start drafting, not after. If your state participates, the office can tell you whether your target program requires review, how to submit, and what timeline to expect. Getting that information early avoids last-minute scrambling before a federal deadline.

If your state has no SPOC, keep a note in your application file that you checked the list. Selecting the right option in Box 19 is your only obligation, but a short record protects you if the question comes up later.

For projects that cross state lines, treat each state’s process as independent. A multi-state project might require SPOC review in one state and none in the next. Plan your submission timeline around the state with the longest review period, so you are not still waiting on clearance after the federal deadline has passed.

1
National Archives. Executive Order 12372 – Intergovernmental Review of Federal Programs
2
The White House. Intergovernmental Review (SPOC List)
3
USDA. Intergovernmental Review
4
The White House. Intergovernmental Review (SPOC List)
5
U.S. Department of Agriculture Rural Development. Instructions for the SF-424
6
U.S. Environmental Protection Agency. Fact Sheet for Applicants Intergovernmental Review Process