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Willacy County to file comments opposing proposed OMB changes to 2 CFR Part 200

Willacy County Commissioners Court · July 8, 2026
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Summary

County staff warned proposed changes to federal grant rules could allow mid‑program terminations and raise administrative burdens; the Commissioners Court voted to adopt and submit a modified NACO template opposing the proposal before the July 13 comment deadline.

County staff urged the Willacy County Commissioners Court July 9 to submit formal comments to the Office of Management and Budget opposing proposed revisions to 2 CFR Part 200, the uniform guidance that governs federal grants.

A county staff member told commissioners the Office of Management and Budget's draft would expand pre‑award review and monitoring obligations, increase the risk of mid‑program termination by the federal government and potentially allow retroactive disallowance of costs. "We don't want there to be uncertainty," the staff member said, arguing that counties and local service providers rely on stable grant rules to budget and sustain programs for vulnerable populations.

The staff presentation cited analysis from the National Association of Counties and noted the template NACO provided would need local modifications. The staff member said the county should press OMB to publish clear, objective risk criteria, limit termination authority to existing statutory bases, require notice and a cure period before termination, and provide safe harbors for grantees with strong audit histories.

Commissioners asked clarifying questions about which local programs might be affected and whether the county could recover additional administrative costs. Staff said the changes could affect victim assistance, domestic violence services, housing, public safety, transportation and social services that rely on federal grants.

The court voted to adopt the NACO template as a base, directed staff to tailor the draft for Willacy County and file the county's comments by the July 13 deadline.

What happens next: Grants staff will finalize the county's comment letter and file it with OMB; the county's submission will be part of the public rulemaking record.