Intergovernmental Affairs Committee Meeting on Federal Grant Rule Changes - August 4, 2026

The Intergovernmental Affairs Committee of the Westchester County Board of Legislators met on August 4, 2026, at 3:06 PM to discuss proposed federal changes to grant administration rules. The meeting featured a presentation from the New York State Association of Counties (NYSAC) on the Office of Management and Budget's (OMB) proposed overhaul of the Uniform Guidance for federal grants, as well as new conditions related to voter data and immigration enforcement. The committee reviewed the potential impacts on Westchester County's approximately $220 million in annual federal grants and discussed advocacy strategies.

Presentation by NYSAC

• Alexandra Regan, Legislative Director, and Dave Lucas, Director of Finance and Intergovernmental Affairs of NYSAC, provided a detailed briefing on the proposed OMB rule published May 29, 2026 (412 pages, 45-day comment period, nearly 500,000 comments received).
• The rule would convert existing OMB guidance into binding regulation, create new discretionary termination authority for awards that "no longer serve the national interest," and allow stop-work orders up to 90 days. Block grants, formula grants, and disaster grants are largely exempt.
• Other changes include: requiring senior appointees to review discretionary awards based on undefined "president's policy priorities," barring viewpoint discrimination at county facilities (even without federal funds), imposing e-verify requirements, mandating written justifications with each payment request, and making SAM.gov reporting a potential termination trigger.
• NYSAC noted that some proposed conditions conflict with New York state law, and that undefined terms (e.g., "significantly damage reputation") create compliance risks.
• Separate from the OMB rule, the Department of Homeland Security (July 10, 2026) made citizenship verification of voter registration databases a condition of certain homeland security grants, and the Department of Justice's COPS program (June 9, 2026) gave priority to jurisdictions cooperating with federal immigration enforcement.
• Presenters emphasized that the rule is not yet in effect; a Senate continuing resolution (released August 2, 2026) includes language that would delay finalization until December 11, 2026. The resolution passed procedural vote 89-4, but House action is pending after recess.

Discussion and Legislator Questions

• Legislators expressed concern about the breadth of discretion granted to OMB, potential conflicts with state law, and the administrative burden on smaller municipalities and nonprofits.
• Legislator Erica Pierce noted that some COPS grant conditions are already being enforced through current grant terms, and that small towns lack legal capacity to navigate the requirements. She questioned how the county can protect its towns.
• Legislators asked why Congress would support giving the President more grant authority; Dave Lucas responded that the rule may provide legal cover for actions already being taken through executive orders, and that litigation is likely. He also noted Moody's has flagged potential credit rating risks for entities heavily reliant on federal grants.
• Legislator David Imamura inquired about legislative responses; NYSAC noted some counties have sued successfully (e.g., Erie County over an AmeriCorps grant), but no coordinated county-level withholding measures are known.
• Legislator Nancy Barr suggested NYSAC coordinate with associations of towns and villages to provide resource tools, given that small municipalities are already seeking guidance on COPS grants.
• The committee discussed the accelerated rulemaking timeline (45-day comment period for a 400+ page rule) and questioned whether OMB will meaningfully consider comments; presenters acknowledged skepticism but emphasized the importance of congressional intervention.

Key Outcomes

• The committee will share NYSAC's presentation and NACo's comments with all legislators and county department heads.
• Legislators were urged to contact Representatives Lawler and Latimer to support the Senate's continuing resolution delay language.
• NYSAC committed to coordinating with the New York State Association of Towns and the New York Conference of Mayors to provide joint educational resources.
• The county will inventory its federal grant portfolio, sub-recipient relationships, and assess e-verify readiness and payment verification processes.
• The committee noted the importance of the delay to allow potential congressional action post-election; no legislative action was taken by the committee at this meeting.
• The meeting adjourned at 4:28 PM.