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LOCAL GOVERNMENT UPDATE
JUNE 30, 2026
OMB Proposes Changes to Uniform Guidance
The Office of Management and Budget (OMB) has proposed significant changes to the “Uniform Guidance”, which regulates how federal grants are distributed. These changes are intended to improve transparency, accountability, and oversight. The proposed rule clarifies that, despite the name, Uniform Guidance is regulation and must automatically be applied government-wide.
The proposal adds several grant requirements first laid out in executive orders related to Diversity, Equity, and Inclusion (DEI) principles, immigration verification, and other national policy priorities, while also granting political appointees the abili ty to review funding requests.
Additionally, federal agencies will have expanded authority to terminate discretionary awards if it is determined that those awards are not aligned with federal priorities.
The proposed rewrite of the Uniform Guidance represents the most significant overhaul of federal grants administration since the original Uniform Guidance was implemented in 2014. Potential impacts include expanded termination authority, new stop -work auth ority, increased payment verification, E-Verify requirements, enhanced subrecipient oversight, greater federal discretion, and increased compliance burden.
The proposal is expected to increase the administrative burden that grant applications bear, including adding additional monitoring and documentation requirements. Stakeholders have until July 13 to submit comments and should prepare for the rulemaking to take effect on October 1. All agencies, including the U.S. Department of Transportation, are preparing to update their grant procedures with this timeline in mind.
Local governments should take immediate administration actions, including monitoring all grants in their organization, review grants terms and conditions, understand internal policies and practices, inventory subrecipient relationships, access E -Verify rea diness, review payment verification processes, enhance monitoring frequency and detail, improve documentation standards, and evaluate exposure across grant portfolios.
Local governments should also consider submitting comments, including what their organizations do well regarding grant administration and internal controls. Comments should also outline how implementation will impact budgets and organization’s future grant s and plans. If your Summit contact has not already spoken with you about these changes, it is important to begin those discussions soon and consider how your organization wishes to comment.
This is still a developing process and there are many questions that remain about what exactly will happen when October begins , and this new guidance goes into place. It is not yet clear how the updated guidance will impact current grants, including those awarded or renewed after October
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1st. Summit continues to monitor the feedback and implementation process of this updated guidance and will keep all clients abreast of important updates.
Housing Bill Signing Put on Hold
This month, the House and Senate passed the 21 st Century ROAD to Housing Act. The final bill, which aims to address the nation’s affordable housing crisis by boosting housing supply and lowering costs, makes minor changes to a House-led version of the bill which passed in May.
The bill streamlines the environmental review process by creating exemptions under the National Environmental Policy Act (NEPA) for certain Department of Housing and Urban Development (HUD) activities. In doing so, the bill aims to cut red tape and simplif y the approval process. It also directs HUD to release guidance on how state and local governments can reform outdated zoning policies and building codes to speed up housing construction. One provision eliminates a rule requiring manufactured homes to be built with a permanent steel chassis, making it cheaper and easier to mass produce affordable housing.
The legislation creates several grant programs aimed at supporting the development of new housing and improvements to existing properties. One program will offer competitive grants to local governments and tribes that have objectively increased their housing supply, while another will award grants to support the conversion of vacant and abandoned buildings to housing. Other programs will focus on updating zoning laws and improving local housing strategies. The bill will also expand activities eligible under HUD’s Community Development Block Grant program.
Notably, no additional funds were authorized to implement these programs.
To address the rising costs of housing, the bill will expand access to small -dollar mortgages and increase the Federal Housing Administration’s maximum loan limits. It also caps institutional investment portfolios at 350 single-family homes. In certain cities, institutional investors such as private equity firms control more than 20% of single-family rental homes, allowing them to drive up prices. While this provision hopes to address that, it does not require firms whose portfolios already exceed the 350-home limit to sell any property, and build-to-rent projects are exempt from the restrictions.
Beyond housing provisions, the bill also includes banking deregulation measures sought by conservatives in the House and a prohibition on developing a central bank digital currency through 2030.
Despite passing both chambers of Congress with overwhelming bipartisan support, President Donald Trump announced he will not sign the bill until Congress passes the SA VE America Act.
Speaker of the House Mike Johnson sent the bill to President Trump’s desk on Monday the 29th. If the President does not sign the bill in 10 days it will automatically become law, as long as Congress is in session. If Congress is adjourned when the 10-day period ends, the bill could die via a pocket veto. Although both chambers are heading into recess on Friday, July 3rd, they are expected to hold pro-forma sessions, meaning that a pocket veto is not likely to occur. Summit has prepared a more comprehensive report on this legislation, which will be sent once the bill becomes law.
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Surface Transportation Extension Questions
There are only a few legislative weeks remaining before the Infrastructure Investment and Jobs Act (IIJA) expires on September 30. While the House Transportation and Infrastructure Committee continues to push for a full five -year reauthorization package, a short -term extension will be needed before the September 30 deadline. Recently, Senate Environment and Public Works Committee Chair Shelley Moore Capito (R -WV) acknowledged that an extension would be necessary and stated that she would like it run through December.
As of this writing, Senate authorizers do not have a topline funding agreement for a surface transportation package, and they have no plan to release legislative text. They are far behind their counterparts in the House, who advanced their version of the five-year bill out of committee. The full House and relevant committees have yet to address the measure.
Appropriations Update
This month, the House Appropriations Committee advanced the Transportation, Housing and Urban Development, and Related Agencies spending bill in a 34-27 party line vote. The Committee adopted a few notable amendments during the full committee markup, including:
• An amendment that would block funding from going to local jurisdictions that refuse to comply with a Department of Homeland Security (DHS) request for advance notice of the scheduled release date and time for an undocumented immigrant in their custody. • An amendment that would bar funding from being used to implement a Biden -era regulation that directs NHTSA to mandate that new passenger vehicles be equipped with advanced drunk and impaired driving prevention technology
The bill will now need to be considered on the House floor. Floor action has yet to be scheduled.
The House has advanced all 12 spending bills out of committee, with Military Construction -V A and the Agriculture spending bills also passing on the House floor.
Meanwhile, in the Senate, the Appropriations Committee has yet to schedule their markups of Fiscal Year (FY) 2027 spending bills. Senate Appropriations Chair Susan Collins (R -ME) had originally planned to mark up six spending bills by this point in the cal endar but ongoing negotiations with Democrats on topline spending levels have forced these markups to be delayed.
It is now unclear when the Senate will start considering FY27 spending bills.
Open Grant Opportunities
Nationally Significant Multimodal Freight and Highway Projects (INFRA): This funding opportunity awards competitive grants for multimodal freight and highway projects of national or regional significance to improve the safety, efficiency, and reliability of the movement of freight and people in and across rural and urban areas. • Agency: Department of Transportation, Office of the Under Secretary for Policy • Funding Range: Floor-Ceiling: $5,000,000-$426,700,000
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• Estimated Total Program Funding: $166,000,000
• Application Deadline: July 15, 2026
Competitive Grants for Rail Vehicle Replacement Program: This funding opportunity provides competitive grants for the Fiscal Year (FY) 2026 Competitive Grants for Rail Vehicle Replacement (Rail) Program.
• Agency: Department of Transportation, Federal Transit Administration • Funding Range: Floor-Ceiling: $0; $0
• Estimated Total Program Funding: $626,700,000
• Application Deadline: July 6, 2026
Pilot Program for Transit-Oriented Development Planning: This funding opportunity helps improve public transportation by providing funding to local communities to integrate land use and transportation planning around a new fixed guideway or core capacity improvement project. • Agency: Federal Transit Administration
• Funding Range: Floor-Ceiling: $0; $0
• Estimated Total Program Funding: $28,492,618
• Application Deadline: July 10, 2026
Building Resilient Infrastructure and Communities (BRIC): This funding opportunity makes federal funds available to states, U.S. territories, federally recognized tribal governments, and local governments for hazard mitigation activities.
• Agency: Federal Emergency Management Agency
• Funding Range: Floor-Ceiling: $0; $150,000,000
• Estimated Total Program Funding: $1,000,000,000
• Application Deadline: July 23, 2026
Title X Family Planning Services Grants: This funding opportunity supports voluntary family planning projects that offer a broad range of acceptable and effective family planning methods and services (including natural family planning methods, infertility services, and services for adolescents).
• Agency: Office of the Assistant Secretary for Health
• Funding Range: Floor-Ceiling: $200,000; $22,000,000
• Estimated Total Program Funding: $257,000,000
• Application Deadline: January 9, 2027
Continuum of Care Competition and Youth Homelessness Demonstration Program Grants: This funding opportunity supports commitments to quickly rehouse individuals and families experiencing homelessness and prevent youth homelessness. • Agency: Department of Housing and Urban Development
• Funding Range: Floor-Ceiling: $2,500; $25,000,000
• Estimated Total Program Funding: $4,040,000,000
• Application Deadline: August 26, 2026
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Technical Assistance and Training for Rural, Small and Tribal Municipalities and Wastewater Treatment Systems: This funding opportunity aims to protect public health and the environment by supporting efforts by small, rural, and Tribal communities to identify water challenges, develop plans, build capacity, comply with Clean Water Act requirements, and access water infrastructure.
• Agency: Environmental Protection Agency
• Funding Range: Floor-Ceiling: $0; $3,000,000
• Estimated Total Program Funding: $25,500,000
• Application Deadline: August 14, 2026
Youth Homelessness Grants: This funding opportunity helps to address youth homelessness by funding response systems and supportive service projects. • Agency: Department of Housing and Urban Development
• Funding Range: Floor-Ceiling: $500,000; $15,000,000
• Estimated Total Program Funding: $193,000,000
• Application Deadline: August 10, 2026
Legislative Tracking
• Senate Discussion Draft: The Agricultural Act of 2026 o Text Released: June 26, 2026
o Sponsor: Sen. John Boozman (R-AR)
o Status: Discussion draft released.
o Summary: This bill (commonly known as the Farm Bill) reauthorizes through FY2031 and modifies Department of Agriculture programs that address commodity support, conservation, trade and international food aid, nutrition assistance, farm credit, rural development, research and extension activities, forestry, energy, horticulture, crop insurance, livestock and other animals, and foreign investments in U.S. agricultural land. This bill is a companion to the House’s Farm Bill, and notably includes steep cuts to SNAP, which would shift the burden of food aid costs away from the federal government and over to the states.
• H.R. 7567: Farm, Food, and National Security Act of 2026 o Date Introduced: February 13, 2026
o Sponsor: Rep. G.T. Thomspon (R-PA-15)
o Status: Passed House; Received in the Senate
o Summary: This bill provides comprehensive reforms to agricultural and rural development programs, extending key authorities through Fiscal Year 2031.
• H.R. 6644: 21st Century ROAD to Housing Act
o Date Introduced: December 11, 2025
o Sponsor: Rep. French Hill (R-AR-02)
o Status: Passed by both chambers, awaiting signature from the President. President Trump says he will not sign the bill until the SAVE America Act is passed.
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o Summary: This bill revises federal housing programs, including by expanding available financing for affordable housing and providing grants for planning and community development activities.
• S. 2975: PIPELINE Safety Act
o Date Introduced: October 6, 2025
o Sponsor: Sen. Ted Cruz (R-TX)
o Status: Passed Senate
o Summary: This bill enhances the safety of pipeline transportation by reauthorizing funding for pipeline safety programs, modernizing inspection and risk assessment requirements, and addresses emerging gases like hydrogen and carbon dioxide.
• S. 4485: Gas Tax Suspension Act
o Date Introduced: May 11, 2026
o Sponsor: Sen. Josh Hawley (R-MO)
o Status: Referred to Committee on Finance
o Summary: This bill establishes a tax holiday for gasoline and diesel fuel.
• H.R. 4109: Recycling and Composting Accountability Act o Date Introduced: June 24, 2025
o Sponsor: Rep. Joe Neguse (D-CO-02)
o Status: Passed Subcommittee
o Summary: This bill requires the Administrator of the Environmental Protection Agency to carry out certain activities to improve recycling and composting programs, including preparing comprehensive reports on infrastructure capabilities across states and local governments.
• H.R. 4669: FEMA Act of 2025
o Date Introduced: June 24, 2025
o Sponsor: Rep. Sam Graves (R-MO-06)
o Status: Passed Subcommittee
o Summary: This bill reestablishes the Federal Emergency Management Agency (FEMA) (currently within the Department of Homeland Security) as an independent, cabinet-level agency. It also makes broad changes to FEMA’s disaster and hazard mitigation assistance programs.
• H.R. 5587: HEATS Act
o Date Introduced: September 26, 2025
o Sponsor: Rep. Young Kim (R-CA-40)
o Status: Passed House; Referred to Senate Committee on Energy and Natural Resources
o Summary: This bill exempts certain geothermal activities on state and private lands (except Indian lands) from drilling permit requirements as well as environmental and historic preservation review requirements.
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• H.R. 7437: BASICS Act
o Date Introduced: February 9, 2026
o Sponsor: Kristen McDonald Rivet (D-MI-08)
o Status: Referred to House Committee on Transportation and Infrastructure o Summary: This bill introduce a new strengthening bridges formula program, with additional provisions expanding metropolitan planning funding uses and enhancing local project selection.
• H.R. 8739: Brownfields Revitalization for a Better Tomorrow Act o Date Introduced: May 12, 2026
o Sponsor: Rep. Brett Guthrie (R-KY-02)
o Status: Passed Subcommittee
o Summary: This bill approves funding through Fiscal Year 2031 for brownfields grants used to revitalize former industrial or commercial sites.
• H.R. 8870: BUILD America 250 Act
o Date Introduced: May 19, 2026
o Sponsor: Rep. Sam Graves (R-MO-06)
o Status: Passed Subcommittee
o Summary: This bill authorizes funding for federal-aid highways, bridge construction, transit, rail, and safety programs from Fiscal Years 2027 to 2031.
Regulatory Tracking
• DOT: Designation-Restrict the Operation of Unmanned Aircraft in Close Proximity to a Fixed Site Facility
o Status: Open for comments
o Deadline: July 6, 2026
o Summary: This action would implement section 2209, of the FAA Extension, Safety and Security Act of 2016, by establishing a process for operators and proprietors of certain fixed site facilities to request and maintain an unmanned aircraft flight restriction.
• FAA: Designation-Restrict the Operation of Unmanned Aircraft in Close Proximity to a Fixed Site Facility
o Status: Open for comments
o Deadline: July 6, 2026
o Summary: This action would implement section 2209, of the FAA Extension, Safety and Security Act of 2016, by establishing a process for operators and proprietors of certain fixed site facilities to request and maintain an unmanned aircraft flight restriction.
• EPA: Extending the Compliance Deadline for the PFOA and PFOS Maximum Contaminant Levels
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o Status: Open for comments
o Deadline: July 20, 2026
o Summary: EPA is proposing a new rule that provides additional time for public water systems to meet the compliance deadlines for the Maximum Contaminant Levels in the National Primary Drinking Water Regulations for PFOA and PFOS. Through this rule, EPA intends to address the most significant compliance challenges EPA has heard from public water systems and other stakeholders.
• HUD: Removal of Environmental Clearance Officer Review and Comment for Assessments for Projects Over 200 Lots/Dwelling Units or Beds
o Status: Open for comments
o Deadline: July 21, 2026
o Summary: This interim final rule removes HUD's requirement that Environmental Assessments for projects over 200 dwelling units or beds shall be sent to the Field Environmental Clearance Officer (FECO) or Program Environmental Clearance Officer (PECO) for review and comment.
• DOE: Updating and Improving the DOE Methodology for Assessing Affordability and Cost- effectiveness of Building Energy Codes
o Status: Open for comments
o Deadline: August 3, 2026
o Summary: DOE is seeking input on its methodology for assessing consumer impacts associated with residential and commercial building energy codes, toward the objective of ensuring transparency in building energy code evaluations.
Agency Activities
DOT Invests $47 Million In Public-Private Partnership Engagement DOT has announced investments in 27 states to build infrastructure projects via public - private-partnerships. Through DOT, states will have access to funding to better facilitate innovative financing solutions for local projects.
DOT Announced $ 1.9 Billion to Repair State Roads and Bridges Damaged by Natural Disasters
DOT has announced a significant investment in emergency relief funding to help states repair infrastructure damaged by natural disasters and catastrophic events. The funding includes more than $908 million to repair damage caused by Hurricane Helene.
DOT Announces $626.7 Million for Infrastructure Nationwide DOT has announced major investments in national infrastructure, with a priority for large- scale projects over $150 million. For the first time, funding will be prioritized for building roads to air cargo hubs and commercial spaceports to support the growth of American aerospace.
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Department of Interior Announces Investment in Parks and Outdoor Recreation Interior has announced an investment of $461 million for parks, playgrounds, trails, and open spaces that bring communities together. These funds will be matched at least 1:1, for a total outdoor recreation investment of more than $900 million.
Department of Interior Announces $733 Million for Community Support Programs Interior has announced that more than 1,900 state and local governments will receive $733 million in funding to support public lands and waters, firefighting, policing, education, and road construction. The funding will come as part of the Payments in Lieu of Taxes program.
EPA Announces Over $270 Million in Brownfields Grants
Grants have been awarded to 190 communities to accelerate the cleanup of polluted sites across the nation. EPA also provided $22.5 million in supplemental funding to 31 high - performing Brownfields Revolving Loan Fund (RLF) grantees for over $270 million in brownfields funding to revitalize American communities.
EPA Seeks to Speed Permitting by Reforming NEPA Comment Letter Process EPA has announced new NEPA comment letter guidance that will more narrowly define the agency’s input role to focus on clean air, water, and land. The new guidance removes questions that address topics like environmental justice, net -zero climate policies, and remedies for historical injustices.
EPA Announced $25.5 Million to Address Wastewater Challenges in Rural, Small, and Tribal Communities
EPA announced $25.5 million in grant funding for technical assistance providers to help small, rural, and Tribal communities address wastewater infrastructure challenges to protect human health and comply with the Clean Water Act. EPA is accepting applications from water technical assistance providers until August 14.
HHS Announces Over $700 Million to Address Mental Illness, Addiction, and Homelessness
HHS announced more than $700 million in behavioral health funding to address addiction and mental illness fueled homelessness. $96 million of the funding will come through the Safety Through Recovery, Engagement, and Evidence -based Treatment and Supports (STREETS) program.
HUD Announces Fair Housing Enforcement
HUD announced fifteen recent fair housing enforcement actions as the Department accelerates civil rights enforcement. They claim to have also reduced a major backlog of cases inherited from previous administrations.
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HUD Announces $193 Million Investment to Address Youth Homelessness This funding will be utilized for developing and implementing projects to increase the efficiency of youth homelessness response systems as well as creating Transitional Housing and Supportive Services projects focused on providing housing with wraparound services to help youth become self-sufficient. Applications for this funding opportunity are due on August 10, 2026.
DOE Announces American Nuclear Supply Chain Loans
The $17.5 billion American Nuclear Supply Chain Loans will help finance five eligible projects sponsored by utilities and energy companies nationwide . The funding will help accelerate the deployment of 10 large-scale commercial nuclear reactors across the United States by up to three years.
DOE Invests $350 Million to Modernize and Restart Coal Plants DOE has selected four coal modernization projects to strengthen coal -based generation, grid reliability, and strategic energy infrastructure. The selected projects will expand and reinvigorate America’s coal fleet through targeted upgrades that increase efficiency, extend plant life, and support reliable baseload power generation.
News Roundup
• Congress passes the largest housing affordability bill in decades — and Trump cancels the signing. NPR
• SNAP rule reversal impacts 23 states: What to know. The Hill • Companies are demanding states cut red tape. Data center-wary voters may think differently. CNBC
• Judge dismisses Trump administration lawsuit over LA sanctuary city policy. The Guardian
• Federal court blocks Trump’s executive order limiting mail ballots. The Washington Post • Supreme Court gives Trump major wins on two immigration cases. CNN • Senate Republicans exclude Democrats’ food aid demand from farm bill. Politico