Senate Funding Bill Delivers a Win for Counties, Delaying OMB's Uniform Guidance Proposed Rule

Key Takeaways

On August 2, the U.S. Senate Appropriations Committee released language for a Continuing Resolution (CR) to fund the government through December 11 that would also delay implementation of the Office of Management and Budget's (OMB) Uniform Guidance proposed rule — the overhaul of federal grants administration – until December 11. The OMB rule would otherwise take effect October 1.

The Uniform Guidance governs every federal grant, cooperative agreement and pass-through award that counties receive – covering public safety, transportation, housing, public health, workforce development, child welfare, emergency management and more. The proposed rule introduces new national policy requirements, modifies grant termination authority, integrates 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.

What the CR Would Do

NACo joined national, state and local government partners in a letter sent Friday (Jul. 31) urging Congress to include the delay in the funding bill. Because the rule cannot take effect while the funding patch is in place, this would push back the OMB Uniform Guidance rewrite until at least December 11 – a major win for counties.

What's Still Ahead

This is a bill, not yet a law. The Senate could vote as early as this week (Aug. 3), but the provision still must clear the U.S. House of Representatives and get the president's signature before it takes effect. The House has already passed its own CR (H.R. 9770) to extend government funding through December 4 that would not delay the proposed OMB Uniform Guidance rule. Any difference between the two bills will need to be resolved before a final funding measure reaches the president's desk.

What Counties Can Do Now

• Contact your Senators: Thank them for including the OMB delay language in the Senate's funding bill and urge them to keep it in as the CR moves forward. 
• Contact your Representative: Urge them to support adopting the Senate's funding bill language, since the current House CR does not include the delay. 
• Stay engaged: Watch NACo's Uniform Guidance resource hub and the Policy Insider newsletter for updates as the CR moves through conference.

NACo’s OMB Proposed Rule Resource Hub