Harris County Attorney Abbie Kamin is opposing a proposed federal rule that county officials say could threaten Harris County federal grants used for disaster recovery, public safety, health care, housing and transportation. Kamin submitted official comments to the federal government on behalf of Harris County.
The Office of Management and Budget proposed the rule as part of a rewrite of 2 CFR Part 200. That section guides how local governments manage federal financial assistance.
Harris County Federal Grants Support Key Services
Harris County currently manages about $4.7 billion in federal grants. Those funds support disaster recovery, public safety, transportation, public health, housing and social services.
In many cases, the county sends money directly to residents. In other cases, local nonprofits, community groups and partner agencies use the funds to deliver services.
Kamin said the proposed rule would create uncertainty for programs that residents rely on every day.
“The funding at risk is used for important public safety and flood mitigation projects, it puts food on the table, roofs over heads, and more,” Kamin said. “These are critical services residents across our county depend on every day.”
Proposed Rule Raises Budget Concerns
Harris County officials argue the rule would give federal agencies broad power to suspend or terminate grants after awarding them. As a result, county leaders say federal funding could shift with changing political priorities.
Kamin warned that the change could disrupt local planning.
“This proposed rule would let a federal agency terminate a grant at any time, even after it was awarded, for purely political reasons,” Kamin said. “It would create chaos for local entities trying to deliver services to the people they represent.”
The county builds federal grants into its budget, contracts, staffing plans and long-term capital projects. Therefore, an unexpected grant termination could leave Harris County with costs it still must pay.
For example, the county may have hired staff, signed vendor contracts, started infrastructure work or promised services to residents. If federal funds disappeared later, the county said it could face difficult choices.
Those choices could include reducing services, delaying projects, using local tax revenue or drawing from reserves.
Disaster Recovery and Fixed Awards Could Face Changes
The county’s letter also raised concerns about proposed changes to fixed-amount awards. These awards provide a set amount of funding for agreed milestones or outcomes.
Harris County said it currently holds more than $2.3 billion in fixed awards. That represents about 45% of its total grant portfolio value.
Additionally, about $1.3 billion of those fixed-amount awards support disaster recovery, according to the county’s comments. Officials said those funds matter because Harris County often faces hurricanes, floods and other major weather events.
The county said the proposed changes could add paperwork, slow urgent recovery work and make it harder for smaller nonprofits to participate. Moreover, officials said the rule could reduce the amount of local work completed with each federal dollar.
Local Partners Could Face More Risk
Harris County also objected to proposed requirements affecting subrecipients. These groups receive federal funds through the county to carry out local programs.
Under the proposal, the county said it could have to monitor vague standards tied to a partner’s conduct or reputation. County officials said those requirements would create legal risk and prove difficult to manage.
The county also warned that uncertainty could discourage banks, developers, nonprofits and other partners from joining major projects. As a result, some housing, infrastructure or recovery projects could face delays or fall apart.
“Harris County is one of the nation’s most vital economic engines,” Kamin said. “When our funding becomes unreliable, so does every partner and every project that depends on it.”
Kamin said federally funded infrastructure, flood control and public health systems serve the broader Gulf Coast region. She urged OMB to keep existing legal limits, create clear criteria and provide notice before any grant termination.