Commissioners agree to draft letter opposing proposed OMB rule change that could let federal grants be altered midstream

Commissioner Steve, the board member who raised the issue during the discussion session, said he would draft a letter to U.S. Rep. Max Miller and the county's senators to voice concerns about proposed changes from the Office of Management and Budget.

Why it matters: County officials said the OMB proposal as described in notices the board received could let federal agencies alter or cancel discretionary grants after they have been awarded, creating potential liabilities for local governments that rely on multiyear funding for jails, transit, wastewater projects and social services.

Commissioner Steve described the changes as “frightening,” saying they would expose counties to fiscal risk if grants were changed midstream. “If it could be canceled … in the middle of a program and you’re complying with the grant requirements, that then puts you on the hook,” he said. He proposed the board send a letter asking Congress to weigh in, delay implementation and require fiscal-impact analysis before the rules take effect.

Brett Thomas, the county finance director, said the practical effect could be large and immediate: the county might need to hold reserves or otherwise alter budgeting to allow programs to be unwound safely if federal funding were rescinded. “The grant can suddenly be defunded,” Thomas said. He estimated some local projects and programs operate on multi‑year grants and that unwinding them without notice could force the county to carry significant costs.

The commissioners discussed specific concerns raised in the notice: the potential for agencies to tie compliance or executive priorities to continued funding, pass-through obligations for contractors, and the administrative burden of replacing vendors if contractors become ineligible under new federal criteria. Thomas warned that, in extreme cases, counties could be required to set aside a substantial portion of each grant as a contingency, leaving tax dollars idle to guard against sudden clawbacks.

The board directed Commissioner Steve to prepare a draft letter for review and forwarding to Rep. Max Miller and the senators. No final wording was adopted in the session; the action was to develop and circulate a comment/advocacy letter from the board.

Next steps: Commissioner Steve said he would draft the letter and circulate it to fellow commissioners and county staff for approval before sending to the congressional delegation.