County warns OMB grant rule rewrite could add local compliance costs

Teton County commissioners are set to sign and send OMB a letter warning that proposed 2 CFR Part 200 grant-management changes would create new compliance uncertainty for counties, including undefined terms that could trigger cost disallowance and liability.

Teton County commissioners are set to sign and send comments to the Office of Management and Budget (OMB) pushing back on proposed changes to 2 CFR Part 200, the rulebook that governs how federal grants are administered and audited. The letter argues the draft rewrite would add compliance risk for counties because key terms are not defined, making it harder to know what is allowed before staff time is spent, contracts are signed, or subrecipients are paid Proposed Federal Grant Management Rule Changes Letter.

For a place that runs federal money through public safety, transit, health, housing, and human services, that uncertainty can translate into higher administrative overhead and more conservative program decisions. The county frames this as the largest federal grant administration update since 2013, and it is asking OMB to tighten the language so routine local operations do not turn into audit exposure later.

Background

Teton County Comments on OMB Proposed Revisions to 2 CFR Part 200

Teton County raised concerns about expanded federal termination authority and compliance risks in OMB's proposed 2 CFR Part 200 revisions, urging clearer rules and protections for local governments.

Latest: 2026-06-08 — Teton County discussed the possibility of objecting to a federal proposal during a public meeting, but no specific OMB comment submission date or process was established.

curated as of 2026-07-04

Source Documents

DateTitleType
July 6, 2026Proposed Federal Grant Management Rule Changes Lettercorrespondence