New proposed changes to federal SAM registration may impact county access to federal funding

Key Takeaways

On January 28, the General Services Administration (GSA) posted a notice to the Federal Register with proposed changes to the System for Award Management (SAM) that could affect how counties access and manage federal funding. SAM is the federal government's centralized system that entities, including counties, must use to register and maintain eligibility in order to receive federal financial assistance.

See the Printed Notice

What SAM proposal is and why it matters to counties 
The proposal would incorporate Executive Order 14173 and U.S. Department of Justice (DOJ) guidance on civil rights compliance into the SAM registration process. Specifically, recipients of federal funding may be required to certify compliance with federal antidiscrimination laws in a way that reflects federal concerns that certain programs or practices associated with diversity, equity and inclusion could be flagged for review. However, the proposal  does not include the actual certification language, but instead  references the Executive Order and DOJ guidance without defining the scope of what compliance would require, which may create uncertainty for counties.

Without clear standards, counties may be asked to certify compliance against criteria that are not yet fully defined in regulation or law - adding burden to public administrators and potentially affecting lawful county programs pending further federal clarification.

Why counties are uniquely impacted
Counties could face increased administrative and legal complexity if required to certify compliance based on broadly referenced federal guidance, particularly where the standards have not been fully translated into specific regulatory requirements. Counties would likely need to conduct extensive internal reviews across legal, procurement, human resources and programmatic functions before completing SAM registration.

Counties support compliance with federal civil rights laws. However, the absence of specific certification language makes it difficult to assess the scope, burden and compliance expectations — and could affect lawful county programs in areas including public health, housing, workforce and community services, depending on how federal guidance is interpreted and applied. Counties may also face expanded expectations to oversee contractors and subrecipients involved in federally funded programs. Because SAM registration is required to access federal financial assistance, unclear or expansive certification requirements could affect the timing and availability of funding for county programs and services.

NACo supports compliance with federal civil rights laws and equal access to services. Counties need clear, workable requirements that reflect the complexity of local government operations.
NACo is developing comments to ensure that:
•    Certification requirements are clearly defined
•    The scope of compliance is transparent and tied to established law
•    Administrative burden is accurately assessed
•    Counties are not exposed to unintended liability for lawful programs or partner activities

What counties can do
County feedback is critical to ensure federal policies reflect how counties operate and support continued delivery of essential services to residents. Counties are encouraged to review the proposed notice and submit comments or to contact their federal representitives and provide their feedback.  

See NACo's Letter