May 29, 2026 - NSDA GRANTS MEMO - OMB Proposes Major Overhaul of Federal Grant Rules
On May 29, 2026, OMB published a proposed rule (91 FR 32198) that would significantly revise the regulations governing federal grants and cooperative agreements (2 CFR Part 200). These rules touch virtually all federal financial assistance—transportation, water, housing, energy, and public safety grants among them.
The proposed changes could affect grant administration, compliance obligations, and funding strategy for special districts. TFG's memo linked below walks through the most relevant provisions and what they may mean for your district.
NSDA Grants encourages special districts to submit public comments by July 13, 2026, at www.regulations.gov (docket OMB-2026-0034). Input from districts, with concrete data and examples, may help shape the final rule that is targeted to take effect on October 1, 2026.
Questions about the proposed rule? Contact the NSDA Grants team. We will continue to monitor this rulemaking and share updates as guidance becomes available.