The National League of Cities (NLC) and other local government organizations opposed to the OMB’s proposed changes to federal grant administration have established a national call-to-action, urging cities to contact their Member of Congress to raise concerns about the rule change and its potential impact on their communities.
Cities that believe they may be affected by these proposed changes are encouraged to review the issue and determine whether they wish to contact their Member of Congress. Submit a letter to your Member of Congress here.
What to Tell Your Delegation
- Federal agencies would gain broad new authority to suspend or cancel active grants mid-award, with no formal appeal process.
- Career staff review would be replaced by political appointees who could block grants that don't match executive priorities.
- New reporting mandates would force cities to fund extra administrative tracking and legal oversight.
- Sudden funding halts could affect municipal bond ratings and raise city borrowing costs.
- Public safety, transit, and housing projects could face funding gaps with little warning.
Taking Action
As Members of Congress spend August recess in their districts, it is crucial for cities to express their concerns about the proposed rule and explain specific examples of the negative impact on their communities.
Although many local Georgia leaders have submitted comments and engaged with federal partners, it is more important than ever to make contact with your congressional delegation.
Submit a letter to your Member of Congress here. You can also call-in or email their D.C. and district offices. Reach out to Federal Relations Manager Molly McLoughlin for any assistance.
If your community has experienced a grant termination in the last year, even a temporary one, let NLC know by filling out this survey.
Background
On May 29, the U.S. Office of Management and Budget (OMB) proposed sweeping changes to the set of rules that govern how federal grants and other forms of federal financial assistance are administered—known as Uniform Guidance. OMB’s goals include increasing transparency, elevating existing guidance into formal regulation, and reducing the overall burden on federal grant administrators and grantees. However, many of the proposed changes raise serious concerns about how cities will navigate federal programs now and in the future.
NLC and GMA support transparency and accountability measures, and advocates to simplify federal requirements on communities, but points of view differ on whether this proposal would accomplish those goals. This includes outcomes that increase regulatory burdens and compliance costs to federal grantees, and could ultimately jeopardize access to federal funds with little or no recourse for impacted communities.
Public comment on the rule closed July 13 with nearly 500,000 comments submitted. The proposed implementation date is October 1, 2026, which would mean the final rule must be published by September 1.
What Does the Rule Change Do
The wide-ranging proposal would substantively change the Uniform Guidance by elevating and expanding the force of Executive Orders beyond federal agencies to individual grantees at the state and local level and increasing the number of administrative burdens on grantees.
If it goes into effect, the OMB guidance will have significant impacts across the board, from state pass-through funding to municipalities to how nonprofits in your community would receive funding.
For more analysis, please see the resources below: