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County Managed $232.6 Million in Federal Funding in FY25; Senate Approved Bipartisan Delay was Approved Today by the U.S. House of Representatives
Montgomery County Executive Marc Elrich is joined by County Council President Natali Fani-González in thanking Congress and the Maryland Congressional Delegation for delaying sweeping changes to federal grant rules that could have disrupted hundreds of millions of dollars supporting public safety, transportation, housing, public health, homeland security, and social services in the County.
The U.S. Senate voted 90-6 on Aug. 8 to approve a Continuing Resolution that would temporarily prevent the federal Office of Management and Budget (OMB) from finalizing or implementing proposed revisions to federal grant regulations through Dec. 11, 2026. Maryland Senators Chris Van Hollen and Angela Alsobrooks supported the measure.
“The Senate recognized on an overwhelmingly bipartisan basis that states, counties, nonprofits and other organizations need adequate time to understand and prepare for changes this significant,” said County Executive Elrich. “Montgomery County managed more than $232 million in federal funding last year for services our residents rely on every day. We appreciate Sens. Chris Van Hollen and Angela Alsobrooks and Reps. Jamie Raskin, April McClain Delaney, and Glenn Ivey for their advocacy and vote for a delay. Federal grants help communities provide services that Congress has already determined are important enough to fund. We want to work with OMB and our federal partners to modernize these rules in a way that improves accountability and protects taxpayers. Congress should give everyone the time needed to get these changes right. This is not partisan. Every American community is impacted by these revisions, including ours.”
Council President Fani-González also called for a delay.
“Our quality of life in Montgomery County relies on federal grant funding that supports every aspect of life, from public safety and transportation projects to essential health and social services,” said Council President Fani-González. “Families feel the impact of these federal funds in their homes and in their daily lives. I join our County, State, and federal partners in calling for more time and clarity before implementing significant changes to federal grant requirements.”
Maryland Sen. Van Hollen highlighted the potential impact these federal policy changes may have had on Montgomery County’s programs.
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“In Montgomery County and across Maryland, taxpayers deserve transparency and accountability from their government,” said Sen. Van Hollen. “The arbitrary rule proposed by the Trump Administration would completely politicize federal grants, leading to more funding uncertainties and disruptions of critical work across key sectors ranging from health and medical research to education innovation and space technology. We pushed for this delay to the Trump Administration’s Office of Management and Budget’s efforts to corrupt the grant making process, and we will keep pushing to rescind it completely.”
Sen. Alsobrooks detailed how some of that grant money is used.
“Our local communities – including here in Montgomery County – rely on federal funding to stay safe, to modernize our infrastructure, and to fuel our economy,” said Sen. Alsobrooks. “We must delay these rules from finalizing or implementing proposed revisions to federal grant regulations. Simply put – our State, counties, and nonprofits will be directly harmed by this Administration’s latest cruel attempt to politicize and change the rules on federal grant structures.”
Rep. Raskin warned about the potential damage to the social services network.
“President Trump and Russ Vought’s wrecking ball continues to pound the programs and services our people depend on,” said Rep. Raskin. “I’m proud that House and Senate Democrats stood strong together to delay this damaging rule to further politicize grant-making. This battle was a big victory in our fight to keep Trump from turning every grant program in America into a political and ideological slush fund. Montgomery County and Maryland must keep fighting to keep American health care research and innovation safe from the Trump Administration’s political domination and retribution campaigns.”
Federal Funding Supports Essential County Services
In fiscal year (FY) 25, Montgomery County managed $232.6 million in federal funding across more than 200 programs supporting services, including public safety, transportation, public health, housing, homeland security, and social services.
To illustrate the scale of that funding, replacing $232.6 million entirely with local revenue would require an amount roughly equivalent to a 9% property tax increase or a one-percentage-point increase in the County income tax, according to County analysis. County residents also pay more than $13 billion annually in federal taxes.
“These are federal tax dollars that Montgomery County residents have already paid,” said County Executive Elrich. “They deserve a federal grant system that is transparent, accountable, and predictable. Abrupt changes that make it harder for local governments and community organizations to access or administer those funds can ultimately affect services, increase local costs, and shift additional burdens onto taxpayers.”
What OMB Is Proposing
The proposed changes affect Title 2 of the Code of Federal Regulations Part 200, commonly known as the Uniform Guidance. These rules govern how federal grants and other forms of financial assistance are awarded, managed, monitored, and audited.
OMB released more than 400 pages of proposed revisions and provided 45 days for public comment.
County Executive Elrich submitted formal comments in July, raising concerns about several provisions and the speed of the proposed implementation schedule. Nearly 500,000 public comments were submitted nationally on the proposal, with published analysis indicating that the overwhelming majority opposed the revisions.
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Montgomery County’s Key Concerns
Montgomery County’s comments identified several areas that could create significant problems for local governments and organizations that receive federal funding:
- Too little time to comply. The County and other federal grantees would have a short period to update systems, procedures, contracts, and staff training before the revised requirements take effect.
- Greater uncertainty over grant decisions. Proposed provisions could allow grants to be paused or terminated under broader discretionary standards, creating instability for governments and organizations delivering ongoing public services.
- Reduced opportunity for public input. The proposed structure could result in significant grant requirements being implemented by individual federal agencies, with less consistent opportunities for public review and comment.
- More administrative burden. New reporting and monitoring requirements could increase costs and workload for the County and for nonprofit and for-profit organizations that receive federal funds through County programs.
- Unclear compliance standards. Ambiguous or undefined requirements could make it more difficult for grantees to determine whether they are in compliance and increase the risk of disruptions in federal funding.
“Montgomery County has a strong record of financial accountability, open data, transparent budgeting, and grant management, and we support responsible efforts to improve federal grant administration,” said Rafael Pumarejo Murphy, director of the Montgomery County Office of Grants Management. “The concern is whether grantees are being given clear rules, reasonable implementation timelines, and workable requirements. Major changes to systems and compliance procedures take time. Moving too quickly creates unnecessary risk for governments, nonprofits, and the residents they serve.”
County Calls for More Time and Clearer Rules
In its formal comments, Montgomery County urged OMB and federal policymakers to provide adequate time for grantees to update systems and train staff; preserve meaningful public notice and comment; establish clear and objective standards for grant decisions; reduce duplicative reporting and compliance requirements; and maintain a predictable federal funding environment for local governments and community organizations.
The County is also urging Congress to ensure that federal agencies do not separately impose substantially similar requirements while the broader Uniform Guidance revisions remain under review.
Montgomery County encourages residents, nonprofit organizations, businesses, and other federal grant recipients to contact their members of Congress and share how abrupt or inconsistent changes to federal grant requirements could affect local services and programs.
Additional Information
County Executive Elrich’s formal comments on the proposed Uniform Guidance revisions are available through the Federal Register public comment docket.
Information about the proposed OMB regulations is available through the Federal Register.
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Read the original article at mcgov
