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El Paso County to submit formal comments opposing proposed overhaul of federal grants rules
Summary
County staff told commissioners the Office of Management and Budget’s proposed rewrite of federal grants guidance would reduce grantee flexibility, expand discretionary terminations and add new pre‑award and post‑award burdens. The court authorized a county letter and outreach to the congressional delegation.
El Paso County commissioners voted July 13 to authorize staff to submit formal comments to the Office of Management and Budget opposing a proposed rewrite of federal grants guidance that county officials said would substantially change how federal awards are administered.
County staff told the court the proposal — a rewrite of 2 CFR 200 into a new Uniform Grants Regulation — would convert long-standing guidance into mandatory government‑wide rules, expand agencies’ discretionary authority to suspend or terminate awards and add new pre‑award political reviews and extensive documentation and subrecipient monitoring requirements.
“About a month and a half ago the Office of Management and Budget and about 41 other federal agencies proposed what is a sweeping rewrite of federal grants guidance,” Elisa Tamayo, the county’s governmental affairs manager, told the court. She said the change “would completely reshape how the federal government manages and awards all grants and financial assistance.”
Michael Amas, first assistant county auditor, told commissioners the rewrite would make previously discretionary practices enforceable and could allow agencies to terminate awards for reasons unrelated to grantee noncompliance. “Under the proposal, OMB rules automatically would apply government‑wide… there’s less flexibility for the county and more direct federal control,” Amas said.
County budget staff warned of concrete fiscal risk: Carmen Arita Candelaria of the Budget and Finance Department said the county currently administers roughly $72,000,000 in federal programs across about 87 programs and that a broader termination or suspension authority would introduce “an untenable level of fiscal risk” and could force difficult tradeoffs for county services and staffing.
County legal staff flagged programmatic and civil‑liberties concerns, including new prohibitions on disparate‑impact analyses, restrictions on collaborations with certain foreign partners, new E‑Verify/subrecipient requirements, and limits on use of funds to support certain diversity, equity and inclusion activities. “One of the things the new rules would prohibit is disparate impact analysis,” Assistant County Attorney Anna Schumacher said, adding that some terms in the proposal were vague and could chill routine activities.
After questions from commissioners, county administration recommended the court approve a written comment letter — drafted using a national counties association template and local data — and authorize the county judge to sign and share the comments with the local congressional delegation. The court approved the motion; staff said the deadline for submission was that night and they would finalize signatures and submit the letter to OMB and to Congresswoman Veronica Escobar and U.S. Senators John Cornyn and Ted Cruz.
The motion carried with the court recording the vote and noting absent members. County staff said they would also coordinate outreach with national and state advocacy groups.
What’s next: County staff will submit the comment letter to OMB by the public comment deadline and brief the congressional delegation on local fiscal and programmatic concerns.
