Roughly $700 million in federal funding that Westchester County channels into local services each year could face new uncertainty under a proposed rule from the White House Office of Management and Budget. County Executive Ken Jenkins filed formal comments on Wednesday, July 15, opposing the changes, according to a county press release.

That money supports programs across Westchester that residents in Rye, Harrison, and Rye Brook rely on: senior centers, downtown revitalization projects, affordable housing, emergency medical services, Hazmat response, firefighting, counterterrorism, safer routes to schools, and road and bridge improvements.

"The proposed rule would make it harder and more expensive for local governments to access and administer these funds while creating uncertainty that ultimately puts residents at risk," Jenkins said in the county's filing. "We strongly urge the Office of Management and Budget to reconsider these sweeping changes."

The proposed regulation, published May 29 as a 412-page rewrite of the federal "uniform guidance" governing all grants nationwide, would give political appointees greater control over which projects receive funding. Under the current system, grants are reviewed by nonpartisan career staff and peer reviewers. The new rule would require appointees to use their "independent judgment" and bar them from deferring to those experts.

It would also expand the federal government's authority to suspend or terminate grants mid-award without a finding of fraud or noncompliance, and without a clear appeals process.

The county warned that the rule would increase administrative burdens, shift oversight costs onto local governments without additional resources, and create vague compliance requirements that expose municipalities to legal and financial uncertainty. A separate provision raises constitutional concerns: federal funds could be withheld if the government determines that speech or activities on county-owned property violate funding requirements.

The 45-day public comment period closed Monday, July 13. The rule drew more than 300,000 public comments nationwide. Jenkins filed the county's formal opposition two days later. If finalized, the rule would take effect Wednesday, October 1, 2026, the start of federal fiscal year 2027.

Moody's has warned that local government credit ratings could suffer if agencies gain the power to terminate grants at will, leaving municipalities without funding for infrastructure and housing projects already underway.

Westchester builds its budget months in advance based on anticipated federal dollars. Jenkins said the uncertainty could force taxpayers to absorb higher costs for services the county is legally required to provide.

The pushback extends beyond Westchester. Republican Sen. Susan Collins asked the White House to withdraw portions of the rule, saying it would "harm small and rural communities, undermine scientific and biomedical research, and conflict with Congress' control over the federal funding process." The National Association of Counties noted that the rule governs funding sent to all 3,069 U.S. counties for disaster management, public safety, transportation, housing, and workforce training.

Jenkins asked OMB to extend the comment period, preserve transparent rulemaking, establish clear standards and appeals processes, remove unworkable provisions, and provide adequate implementation time.

No local officials from Rye, Harrison, or Rye Brook have publicly commented on the proposed rule. The next milestone is OMB's response to the public comments, though no timeline for that response has been announced. If finalized, the rule would apply to all grants awarded beginning October 1, 2026.