State Futures Supports Coalition of 55 Legislators from 23 States Opposing Office of Management and Budget's Proposed Rule Changing Federal Grant Processes
Legislators say the rule threatens to turn federal grants into a political weapon, jeopardizing states' fiscal stability and core public services
Washington, DC – July 13 – Minnesota Representative Liz Reyer, with support from State Futures, led a coalition of 55 state legislators from 23 states to file a joint comment opposing the Office of Management and Budget’s proposed rule to revamp the federal grant process.
The Proposed Rule would have very significant harmful fiscal impacts on states. It would give federal agencies broad new powers to terminate, suspend, or deny grant awards to states for partisan reasons, which could destabilize states' funding streams and undermine states’ abilities to plan and deliver essential services.
State legislators authorize multi-year capital programs (and the debt that finances them), appropriate state matching funds that many federal grant programs require, enact state budgets, and in nearly every state, are constitutionally required to balance them. State legislators also establish, fund, and oversee the state agencies that administer federal awards and pass federal dollars through to local governments, school districts, public universities, housing authorities, and community organizations.
States rely on predictable, rules-based funding partnerships with federal agencies, and legislators are the ones answerable to constituents and communities if a project collapses uncompleted or goes unfunded for baseless, partisan, unappealable reasons. This coalition of lawmakers stand united to oppose this Proposed Rule, which could wreak havoc on state budgets and economies.
“Once you allow federal funding to be granted or denied based on political alignment, you've broken the basic promise that the rules are the same no matter who's in charge,” said Gaby Goldstein, President of State Futures. “This Proposed Rule isn't a grants management reform. It's a mechanism that allows the executive branch to reward political allies and punish others. State legislators are standing together in opposition.”
The full comment and signatories are available here.
Journalists are encouraged to reach out to State Futures for comment and for connections to signatories, including Rep. Reyer.
About State Futures:
State Futures is a national nonprofit that supports a network of 850+ values-aligned state policymakers, including legislators and State Financial Officers. Through working groups, policy research, and strategic support, State Futures empowers state policymakers to learn from each other, innovate together, and take coordinated action across states.
Media Contact: Kristen Wilder, Communications
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