Non-supplanting: Overview, definition, and example
What is non-supplanting?
Non-supplanting refers to a restriction on replacing existing funding, personnel, or resources with new funds, especially in the context of grants, subsidies, or public contracts. It ensures that the recipient uses the new funds to supplement existing efforts, not to replace (or supplant) resources they were already obligated to provide. This concept is often applied in government funding agreements to prevent misuse of funds.
Why is non-supplanting important?
Non-supplanting is important because it preserves the integrity and intent of funding programs. For example, if a government agency awards a grant to expand public services, it expects those funds to enhance services—not to let the recipient cut their own spending and rely entirely on the grant. Including a non-supplanting clause ensures accountability and helps funders verify that their contributions are genuinely additive, not substitutive.
Understanding non-supplanting through an example
A school district receives a federal grant to hire additional counselors. Under the grant’s non-supplanting requirement, the district must use the funds to add new counselor positions, not to cover salaries for existing positions that were already budgeted through state funding. If the district uses the grant to pay for current staff, it would be violating the non-supplanting rule.
Example of how a non-supplanting clause may appear in a contract
Here’s how a non-supplanting clause may appear in a grant agreement:
"Funds provided under this Agreement shall supplement and not supplant any existing funding sources or resources otherwise available for the activities supported herein."
Conclusion
Non-supplanting is a funding safeguard that ensures new financial support is used to expand or improve services, not to replace existing commitments. It promotes transparency and fiscal responsibility, particularly in publicly funded programs. Parties receiving grants or public funding should carefully track how funds are used to stay compliant with non-supplanting rules.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.