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City Voices Are Needed on Proposed Federal Grant Changes
Comments must be submitted to the U.S. Office of Management and Budget by July 13, 2026.
The League of Minnesota Cities encourages city officials and staff to review and comment on a proposed federal rule that could significantly affect how cities access and administer federal grants. Because cities are on the front lines of delivering services and managing federally funded projects, your experiences and perspectives are invaluable in helping shape the final rule.
Cities have until July 13, 2026, to submit comments to the U.S. Office of Management and Budget (OMB) before the agency begins developing the final rule.
About the proposed federal rule
Federal grants help Minnesota cities fund essential services and community investments. Now, proposed changes to the federal rules governing those grants could have lasting implications for local governments across the country.
OMB has proposed a major update to the Uniform Guidance (“2 Code of Federal Regulations (CFR) Part 200”), the federal regulations that establish requirements for nearly all federal grants and cooperative agreements. If adopted, these changes would represent the most significant overhaul of federal grant administration in more than a decade and are expected to take effect Oct. 1, 2026.
How the proposed changes in the federal rule would affect cities
The National League of Cities (NLC) provides an overview of the proposed changes and explains how they could affect local decision-making, increase administrative requirements, and change how federal grants are awarded, managed, and terminated. Among other changes, the proposed rule would:
- Significantly expand federal authority for grant terminations and, in many cases, allow for termination of grants mid-award.
- Increase administrative burdens on cities by introducing new compliance requirements.
Why Minnesota cities should comment
OMB is accepting public comments on the proposed rule, and local government perspectives are essential. OMB needs to hear directly from cities about how these changes could affect their ability to access, administer, and comply with federal grant requirements.
To make the process easier, NLC has developed a Comment Letter Guide and Template that city officials can use as a starting point.
Whether your city relies on federal funding for infrastructure improvements, public safety, housing, economic development, parks, or other community priorities, your feedback can help ensure the final regulations reflect the realities local governments face.
Consider answering the following questions in your comment letter.
- How would the proposed changes affect your city’s current or future federal grant-funded projects?
- Would the new requirements increase administrative costs, delays, or complexity?
- How could the changes affect partnerships with contractors, nonprofits, counties, or other grant recipients?
- Are there unintended consequences that could make it more difficult to deliver services or complete community projects?
The most impactful comments include specific, real-world examples from your city’s experience administering federal grants.
Tips for preparing comments
Comments do not need to be lengthy or highly technical. Focus on how the proposed rule would affect your city and the residents you serve.
When preparing your comments:
- Reference specific sections of the proposed rule when possible.
- Include examples from your city’s operations or grant-funded projects.
- Explain any additional costs, administrative burdens, or implementation challenges the proposal may create.
- Remember that all submitted comments become part of the public record, so do not include confidential or personal information.
How to submit comments
Submit comments to OMB on the Regulations.gov website no later than July 13, 2026.
The League encourages every city that receives or administers federal funding to consider submitting comments. By sharing your city’s experience, you can help shape the federal grant regulations that support effective local governance and preserve cities’ ability to serve their communities.