Presenters warn OMB proposal could allow midstream grant cancellations and clawbacks

Aug 4, 2026

NYSAC presenters told Westchester officials the proposed rule would give agencies discretion to terminate awards and issue stop-work orders, potentially leaving counties with committed local matching funds and unfinished multiyear projects.

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NYSAC presenters told the Westchester committee the proposed OMB rule would create a new discretionary ground to terminate federal awards "if it no longer serves the national interest as it exists at the time of termination," and would allow stop-work orders of up to 90 days with narrower appeal rights.

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