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Lake County advisors warn OMB proposal could upend federal grants
Summary
Paragon Government Relations briefed the Lake County Board on a proposed OMB rule that consultants said would centralize political review over grant decisions, create uncertainty for counties and nonprofits, and is likely to face litigation after more than 500,000 public comments were filed.
Rachel Mackey of Paragon Government Relations told the Lake County Board that a proposed Office of Management and Budget rule would ‘‘completely change federal financial assistance as we know it’’ by centralizing review and giving political appointees broad discretion over competitive grants.
Mackey said the rule focuses on discretionary (competitive) grantmaking but could attach new requirements to formula and mandatory funds, and would require subrecipients to be integrated into the Treasury’s ‘‘do-not-pay’’ system. She noted the public comment period closed July 13 and that ‘‘there were over 500,000 comments submitted’’ to the rule, which Paragon and county associations expect will support legal challenges if a final rule issues on an accelerated timetable the agencies have signaled.
Board members and the county’s consultants discussed practical risks for Lake County programs and emphasized advocacy channels. Mackey and Paragon said litigation and state-led responses were likely to be the best routes to block or mitigate the rule if it is finalized on the timetable the agencies have suggested.
