Proposed updates to federal awards could undermine stability

Several proposed provisions updating Guidance for Federal Agency Assistance would undermine the stability and fairness of the federal financial assistance system for well-performing recipients. In comments filed Monday, America's Credit Unions requests the Office of Management and Budget withdraw the proposed rule and retain the current regulatory framework. 

“The administration's oversight goals can be pursued, where authorized, through agency-specific rulemakings under each agency's program statutes and through legislation where new authority is needed,” the letter reads, adding that the proposed changes would have “direct and significant” impacts on programs like Treasury’s Community Development Financial Institution Fund and NCUA’s Community Development Revolving Loan Fund.

While America’s Credit Unions supports the administration’s objectives of maximizing transparency and accountability, the proposal rests on “uncertain statutory footing,” and could especially destabilize well-performing federal grant recipients. 

Existing frameworks allow individual agencies to implement policy through their own statutes, measure awards against enacted program purposes, and provide recipients the opportunity to account for their stewardship of federal funds. 

Read the full letter