A key provision in the Senate’s FY 2027 Continuing Resolution would temporarily block the Office of Management and Budget from finalizing its proposed Uniform Guidance rule, preserving stability for counties while advocacy efforts continue.
The US Senate’s Fiscal Year 2027 Continuing Resolution includes language preventing the Office of Management and Budget (OMB) from finalizing its proposed changes to the Uniform Guidance through December 11.
The provision also closes a potential loophole that could have allowed OMB to finalize the rule immediately before the continuing resolution took effect, ensuring the delay cannot be circumvented. If enacted, the language would prevent any new Uniform Guidance rule from taking effect before December 11, providing additional time for Congress and local government advocates to pursue a longer-term solution.
On July 31, the National Association of Counties (NACo) and several partners sent a letter urging Senate leaders to include language in the continuing resolution halting implementation of the proposed rule, arguing that the changes would create significant uncertainty for governments that depend on federal grants to deliver essential public services.
From the letter:
Several proposed changes in the rule – including provisions allowing mid-award grant
terminations based on shifting federal priorities and permitting agencies to alter terms and
conditions throughout the period of performance – would undermine the reliability that
state and local governments depend on when planning and budgeting for federally funded
projects. This uncertainty extends far beyond any single project, negatively impacting local
government credit ratings due to increased financial liability made inherent in accepting
federal funds.
Federal grants governed by the Uniform Guidance support a wide range of county priorities, including transportation, public safety, public health, workforce development, affordable housing, and infrastructure investments. Counties rely on stable and predictable federal partnerships to responsibly budget taxpayer dollars and carry out these projects.
