NACo ACTION ALERT

OMB Proposes Major Overhaul of Federal Grant Rules 

Counties Must Submit Comments by July 13

The Office of Management and Budget (OMB) has published a proposed rule rewriting 2 CFR Part 200 — the Uniform Guidance — the largest overhaul of federal grant rules since 2013. This rule governs every federal grant your county receives, covering public safety, transportation, housing, public health, emergency management and more. The public comment period closes July 13, 2026.

To assist counties, NACo has developed an online resource hub and comprehensive analysis.

What Your County Should Do Now

1. County attorneys: Review the proposed rule — particularly the new discretionary grant termination authority, expanded pass-through entity obligations, new event-services requirements and the reclassification of 2 CFR Subtitle A from policy guidance to binding federal regulation.
2. County officials: Use NACo's template comment letter to submit formal comments, personalized with your county's specific grant programs and local examples of how the proposed changes could affect service delivery and budgets.
3. Submit comments by July 13. Every county comment on the record strengthens NACo's advocacy and ensures local government realities shape the final rule.

Key Provisions at Stake for Counties

• New discretionary federal authority to terminate grant awards mid-program
• Expanded pre-award review requirements that could delay and deter grant applications
• Increased pass-through entity obligations and sub-recipient monitoring requirements
• Reclassification of Uniform Guidance from policy guidance to binding federal regulation

We Want to Hear from You: OMB Uniform Grants Guidance Office Hours

NACo wants to hear directly from counties about what's at stake.

Join us for a series of live office hours sessions where NACo staff will listen to how the proposed rule could affect your county's federal grant programs, operations, and capacity.

Sessions run 4–5 p.m. ET on the following dates:

• Thursday, June 25
• Tuesday, June 30
• Thursday, July 2
• Tuesday, July 7

Your input will directly shape NACo's formal comment letter ahead of the July 13 deadline.

Join via Microsoft Teams
Meeting ID: 270 302 425 517 545 | Passcode: 4oL9XY9q

NACo RESOURCES

Resource hub »

NACo's resource hub on the proposed rule includes analysis, webinar recording and slides, reference materials and more.

Template letter »

Use this customizable template to submit official comments to OMB before the July 13 deadline.

Submit comments »

Submit comments at regulations.gov using docket OMB-2026-0034.