Understanding the Proposed Rewrite of 2 CFR: What the OMB Uniform Guidance Proposed Rule Means for Local Governments

On May 29, 2026, the Office of Management and Budget (OMB) published a proposed rule rewriting the Uniform Guidance at 2 Code of Federal Regulations Part 200, 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 is the most substantial revision to federal grants administration since the 2013 promulgation of the Uniform Guidance.

The proposed rule introduces new substantive policy requirements, modifies the termination framework, integrates federal grants administration with the Treasury Do Not Pay system, reclassifies 2 CFR Subtitle A from guidance to binding regulation, and revises cost principles, audit requirements, and pass-through entity responsibilities. Federal grants to state and local governments totaled $1.1 trillion in FY 2024 and represented 17 percent of total federal outlays, making this rulemaking operationally significant across essentially every domain of local government responsibility, including public safety, public health, transportation, housing, workforce development, child welfare, emergency management, environmental protection, and the broad range of community services local governments administer.

This educational webinar provides a substantive overview of the proposed rule, its operational implications for local governments, and the key provisions warranting attention as the July 13, 2026 comment deadline approaches. Hosted jointly by NACo, NLC, USCM, GFOA, ICMA, and IMLA, the briefing is designed to support informed engagement by local government practitioners, finance officers, attorneys, and policy staff. Registration is open to members of the hosting organizations and their staff.