On May 29, 2026, the Office of Management and Budget (OMB) published a proposed rule rewriting the Uniform Guidance at 2 CFR Part 200, which is the federal regulation governing every federal grant, cooperative agreement and pass-through award. Published as a joint rulemaking by OMB together with every federal grantmaking agency, the proposed rule represents the most substantial revision to federal grants administration since the 2013 promulgation of the Uniform Guidance.
The wide-ranging proposal would significantly impact many domains of local government responsibility — including public safety, public health, transportation, infrastructure, housing, workforce development and emergency management.
NLC supports efforts to strengthen accountability and stewardship of federal funds. However, several provisions in the proposed rule could unintentionally limit local governments’ ability to access, administer and effectively use federal funding. As OMB revises the federal grants framework, it should ensure that new requirements strengthen accountability without creating barriers that undermine local governments’ ability to serve residents and deliver essential services.
It is important for the federal government to hear from every city, town and village as OMB determines the final rule on how all federal funding and grants should be managed, with an eye on an Oct. 1, 2026 implementation deadline. NLC has put together information to help you submit comment letters.
What to Include in Your Comment Letter
- Provide specific, local examples of how the changes would affect your municipality.
- For example:
- How might this impact federal funding you already have and manage (staffing, infrastructure, etc)?
- Will it make projects more expensive, more cumbersome, more confusing?
- Will it change how you work with subrecipients and contractors?
- For example:
- There is no required format or length for your comments, but NLC’s Comment Letter Guide (PDF) provides examples on how to format your letter and what type of content to include.
- Remember: these comments will be made publicly available. Do not include any personally identifiable information that you would not want to be made public.
- For assistance or to share your comment letter with NLC to help us track community impact and strengthen our collective advocacy, send us an email.
Next Steps
Consider sharing your comment letter with your Members of Congress to ensure that your federal representatives are educated on the proposal and aware of the impact that it might have on local communities.
NLC’s Comment Letter Guide (PDF) is available to help your community submit comments. To learn more about the impact that these proposed changes may have on your community, watch NLC’s recorded webinar or read NLC’s overview of the proposed changes. If your community has previously dealt with a canceled grant, we encourage you to share your story.
Reach Out
For questions or to share information, send us an email.
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