Missoula County concerned with possible change to federal grants

Martin Kidston

(Missoula Current) Missoula County joined the growing list of voices this week expressing concern over proposed changes to a federal grant program – one that could put local governments across the country at risk of losing federal funding, even after it's awarded.

The county on Tuesday approved a letter to the federal office of Management and Budget regarding the proposed changes, contending that the measure would “impact every aspect of how Missoula County applies for, administers and accounts” for federal funding.

“This is a really sweeping proposed revision to uniformed grant guidance and many national organizations, including the National Organization of Counties, are encouraging people to pay attention to the proposed changes that may create additional challenges in how we apply for an manage federal grants,” said Melissa Gordon. “We'd pay for services in good faith and may not receive reimbursement for them.”

While the proposed revisions run around 400 pages, the county has narrowed its concerns down to roughly four, including federal efforts to expand the termination of an already-awarded grant.

Commissioner Josh Slotnick said the change would place the county at financial risk.

“It's really dramatic the amount of risk if this happens,” he said. “We'd be stuck having to pay for things we were told we'd be reimbursed for with a federal grant. It would be really disruptive.”

Among other things, the county also expressed concern with new terms and conditions during a grant's performance period. The proposed rule would enable a federal agency to add, remove or change conditions on federal awards, “adding significant uncertainty” for cities and counties.

“We wouldn't have clear guidance on what's the benchmark for performing. That would be ever-changing,” said Gordon. “There's just lots of uncertainty. It would make receiving federal funding a very uncertain thing. It would put the county at risk, since most federal grants operate on a reimbursement basis.”

The county and city turn to federal grants for a wide range of needs, from infrastructure to wildfire preparedness. Currently, around 22 county departments administer more than 120 federal grant awards that also include housing and public safety.

In past years, Gordon said that once a federal grant is awarded, it's solidity has been relatively certain. Under the proposed changes, however, that certainty would vanish.

“We could be in the midst of a grant cycle and have a grant terminated by a politically appointed individual. There aren't definitions around what's cause for termination. That's concerning,” Gordon said.

The proposed changes could go into effect this October.