Last week, Congress approved a short-term spending bill that keeps the federal government funded through December 11 while delaying a sweeping rewrite of federal grant rules. The delay gives counties additional time before the proposed changes to federal grant administration can take effect.

According to the National Association of Counties (NACo), the continuing resolution largely maintains fiscal 2026 funding levels while Congress continues work on fiscal 2027 appropriations.

It also extends several programs important to counties, including the National Flood Insurance Program, and allows continued spending for the Federal Emergency Management Agency’s Disaster Relief Fund.

For counties, the legislation also postpones implementation of the Office of Management and Budget’s proposed overhaul of the Uniform Guidance until December 11. The rules govern how governments receive, administer, monitor, and manage federal grants across programs ranging from transportation and public safety to housing and disaster recovery.

The delay is a significant win for counties, which raised significant concerns about the scope of the proposed changes and the original October 1 implementation timeline. NACo had urged OMB to provide more time, conduct formal consultation with state and local governments, and reconsider provisions affecting grant termination, subawards, and other administrative requirements.

The delay does not resolve those concerns, but it gives counties more time to assess how the proposed rules could affect existing grants, internal controls, subaward agreements, monitoring requirements, and other grant administration procedures. Congress will also need to revisit federal funding before the continuing resolution expires on December 11.

Stay tuned to Conduit Street for more information.

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NACo: Congress Passes Short-Term Funding Bill, Keeping Federal Government Funded Through December 11 and Delaying OMB Rule