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Committee member warns proposed federal grant rules could disrupt county-funded programs
Summary
A committee member told the Lake County board that proposed changes to the Office of Management and Budget's guidance could require background checks for anyone handling federal grant funds, risk funds being withdrawn for vague 'reputational harm,' and fundamentally change how local governments receive federal funding.
A committee member (S3) told the Lake County board that recently completed federal regulations could force new requirements on local grant recipients and their partners and may take effect in early October. "If we receive Federal grants, we have to prove that everybody who touches the federal grant funding...would have to get background checked for citizenship," the committee member said.
The member said the rules would change the Uniform Guidance at the Office of Management and Budget and carry a provision described in the transcript as exposing recipients to undefined "reputational harm," which could be used to withdraw funding. "This would change the relationship between the federal government and local municipalities from a government to government relation, to a government to contractor relationship," the member added, saying that would reduce local control and complicate partnerships with consultants and service providers.
At the meeting the member said the county will review options, including legislative review or negotiations during federal budget reconciliation, and will discuss the matter with county administrative staff and county counsel. They said the rule package had completed public comment and was "supposed to get activated on October," and that staff must evaluate how the changes would affect ongoing local projects and grant-funded services.
No formal action was taken at the meeting; the committee member said they will follow up with administrative staff and counsel and wait to hear from Vice Chair Paiske and other colleagues before recommending any county-level response.
