The federal Office of Management and Budget (OMB) is seeking public comments on a proposed rule that would make significant changes to the federal rules governing grants, cooperative agreements, and other forms of federal financial assistance.
According to the National Association of Counties (NACo), comments on the proposed rule are due by July 13, 2026. NACo is encouraging county officials to review the proposal and submit comments reflecting any impacts, questions or concerns.
The proposal would revise the federal Uniform Guidance, which establishes government-wide requirements for the administration of federal financial assistance. These rules affect how counties and other recipients manage federal grants, including requirements involving budgeting, compliance, procurement, reporting, audits, allowable costs, and oversight.
Federal funding supports a wide range of county programs and services, including infrastructure, transportation, emergency management, public health, behavioral health, housing, workforce development, public safety, and other local priorities. Changes to federal grant rules could therefore have direct administrative and financial implications for county governments.
Counties may wish to review the proposal to determine how the changes could affect existing and future federal grant awards. Issues of particular interest may include any new compliance obligations, documentation requirements, procurement standards, reporting expectations, audit provisions, cost principles or federal agency oversight authority.
NACo reports that OMB’s proposed rule can be found under docket number OMB-2026-0034. County officials interested in submitting comments should do so before the July 13 deadline. To assist counties in understanding the proposed re-write, NACo recorded a webinar to explain how the proposed rewrite could affect local governments.
ISACo will continue to monitor the proposed rule and any analysis from NACo concerning its potential impact on county governments.