Counties Face July 13 Deadline to Weigh In on Sweeping Federal Grant Rule Changes

Maryland counties have until July 13 to comment on a sweeping federal proposal that would rewrite the rules governing billions of dollars in federal grant funding.

National Association of Counties LogoThe US Office of Management and Budget (OMB) has proposed the most significant changes to the Uniform Guidance since its adoption in 2013.

The Uniform Guidance, codified in 2 CFR Part 200, establishes federal requirements for grants and cooperative agreements that support county programs, including public safety and emergency management, transportation, housing, public health, workforce development, and child welfare.

According to the National Association of Counties (NACo), the proposal would affect all 3,069 counties nationwide and govern roughly $1.1 trillion in annual federal grant funding.

The proposed rule includes several changes with broad implications for county governments. Among them, OMB would expand federal authority to terminate grant awards before projects conclude, increase pre-award review requirements, impose additional responsibilities on pass-through entities, revise cost principles and audit requirements, integrate grant administration with the Treasury Department’s Do Not Pay system, and reclassify portions of the Uniform Guidance from federal policy guidance to binding regulation.

NACo encourages county attorneys to pay particular attention to the proposed grant termination authority, expanded pass-through responsibilities, subrecipient liability provisions, and viewpoint-neutrality requirements. Counties can use NACo’s template comment letter and tailor it to local grant programs and examples illustrating how the proposed changes could affect county budgets, operations, and service delivery.

NACo will also host virtual office hours from 4:00 pm to 5:00 pm on June 25, June 30, July 2, and July 7. The sessions will allow county officials to discuss the proposal with NACo staff before the association submits its formal comments to OMB.

County comments will help inform NACo’s advocacy and provide federal officials with local perspectives before the public comment period closes on July 13.

Visit NACo’s County Resource Hub for more information.