Montgomery County officials are thanking Congress and Maryland’s congressional delegation after the U.S. House of Representatives approved a delay to proposed changes to federal grant regulations that County leaders warned could disrupt funding for hundreds of local programs.
The measure, previously approved by the U.S. Senate in a 90-6 vote on August 8, would temporarily prevent the federal Office of Management and Budget from finalizing or implementing proposed revisions to federal grant regulations through December 11, 2026. Maryland Sens. Chris Van Hollen and Angela Alsobrooks supported the measure.
Montgomery County managed $232.6 million in federal funding across more than 200 programs in fiscal year 2025, supporting public safety, transportation, public health, housing, homeland security and social services. According to a County analysis, replacing that funding 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.
“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,” County Executive Marc Elrich said.
The proposed OMB revisions affect federal rules governing how grants and other financial assistance are awarded, managed, monitored and audited. Montgomery County raised concerns about the timeline for implementation, uncertainty surrounding grant decisions, additional administrative requirements and unclear compliance standards.
County Council President Natali Fani-González joined Elrich in supporting the delay, saying federal funding supports services that affect residents throughout the County. Montgomery County is calling for additional time for grant recipients to update systems, train employees and prepare for any eventual changes to federal requirements.
