Intergovernmental Affairs Committee Meeting on Federal Grant Rule Changes - August 4, 2026
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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.
Meeting Transcript
How timely was this? Oh, so I woke up to oh and yeah, because I had seen articles from other sources before this. Okay. I think I mentioned it. I literally I woke up at 5 30. You know, you scroll. So this meeting is being recorded and summarized. Good afternoon. My name is Emiliana Uli. I'm honored to serve as the chair of the Intergovernmental Affairs Committee. Um let's get started by taking attendance. I am here. Vice Chair Dave. Legislator Erica Pierce. Present. Register Woodson Samuels. Uh Majority Rick Chine Williams is here. Here. And Chairman Gashi is here with us right now. We are called to order at 3.06 p.m. So I don't know if you can hear that. There's loud silence right outside of us, but we will that is a perfect metaphor for the start of this meeting. Um we are gathered today to talk about Office of Budget Management changes to grant authorizations. Um we are very worried in Westchester County, so much of our critical services and the uh nonprofits that help our residents rely on these federal grants, and a lot of these changes are coming in that uh worry us about the future of these programs. And so um so glad that folks from NISAC were able to join us to hopefully give us clarification on the changes that are coming down and what can we expect and what we should be watching out for. Uh, we are also joined by Legislator Nancy Barr. Thank you for joining us, the chair of the Family Task Force. Uh I think Legislative Williams Johnson is in the elevator coming up. Oh, wonderful. So we have with us Alexandra Reagan, legislative director of NISEC. Hi, Alexandra. Hi, everyone. Thank you for having us. And I see a Dave Lucas as well. Hello, I'm Dave Lucas. I'm the director of finance and intergovernmental affairs with NiceC. Thank you so much. Alex, do you have a presentation? Yes, we do. Let me share. While she's getting that teed up, let me just say to both of you guys, as I know both of you, thank you so much for being here virtually, of course. Um, and for giving us, you know, this incredibly important and timely presentation. Yes, thank you so much. We really appreciate you having us. This is an absolutely timely topic. It will impact every county across New York State and really across the country, of course, including Westchester County. So we appreciate the opportunity to join you. Um thank you specifically to the chair and the members of the committee for having us. I'm Alex Regan. I'm our legislative director at NISAC, the New York State Association of Counties.
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