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NSDA Documenting Concerns About OMB Proposed Rule to Rework Federal Funding Processes

By Morgan Leskody posted yesterday

  

NSDA is currently analyzing, providing resources and asking for input.

What are we hearing?

NSDA has been collecting feedback on potential impacts from the rule changes and across the board, our members are extremely concerned.  Please send feedback to your State Association lead or Chantalu@nationalspecialdistricts.org.   

What is most concerning? 

  1. Potential termination of grants at anytime for any reason
  2. Review and cancellation by political appointees which may create bottlenecks 
  3. No consultation process of the rule proposal 
  4. potential for impacts to municipal bond ratings and project delivery.

Extension Request: The National League of Cities (NLC) U.S. Conference of Mayors (USCM), National Association of Counties (NACo), International City/County Management Association (ICMA), National Conference of State Legislatures (NCSL), Council of State Governments (CSG), Government Finance Officers Association (GFOA), National Association of Development Organizations (NADO), Association of Metropolitan Planning Organizations (AMPO), and the National Association of Regional Councils (NARC) sent a letter to Office of Management and Budget (OMB) Director Russ Vought and OMB Office of Federal Financial Management officials Joel Savary and Andrew Reisig asking for a 45-day extension of the public comment period for the rule. The letter argues that the current timeline is insufficient to evaluate a sweeping, government wide rewrite affecting roughly $1 trillion in federal grants; it emphasizes that state and local governments need more time to assess significant operational impacts and provide meaningful feedback to ensure the rule reflects on the ground implementation realities. 

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