DENVER ~ In a recent statement, the State of Colorado expressed serious concerns regarding a proposed rule from the White House Office of Management and Budget (OMB) that would give political appointees more control over federal grants. The state's comments were submitted in response to the proposal, which could potentially allow the Trump Administration to deny, suspend, or cancel funding for projects that do not align with the President's political agenda.

Governor Jared Polis stated that federal funding should be awarded based on merit and not used as a means to reward political allies or punish states that disagree with the President. He emphasized that Coloradans pay significant amounts in federal taxes and should be able to rely on receiving funding for essential services such as roads, public safety, healthcare, and scientific research without fear of it being halted for political reasons. The Governor also stressed that it is Congress' responsibility to determine how taxpayer dollars are invested and no President should have the power to disregard their direction or change the rules midway through a project.

According to Colorado's Federal Funding Dashboard, since January 2025, the state has successfully defended over $1.21 billion in funding that the federal government has attempted to cut. These grants cover various areas such as substance abuse prevention, public safety, transportation infrastructure, and other critical services.

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The OMB proposal would not only give federal agencies more authority to alter the terms of an award after it has been approved but also allow them to suspend funding for up to 90 days if they deem it in their "best interest." Additionally, agencies would have the power to cancel an award before a project is completed. These changes could leave states, local governments, municipalities, universities, and community organizations responsible for costs incurred after relying on a federal commitment.

Colorado's comments warn that if implemented, this proposal would create uncertainty for investments in infrastructure, public health, public safety, education, workforce development, healthcare and research across the state. The changes could also result in costly administrative requirements, disproportionately affect smaller and rural communities, slow disaster response efforts, and hinder the progress of promising research.

The proposal has sparked widespread concern across the country and has received a staggering 341,699 public comments. This is significantly higher than the average number of public comments on a proposed rule, which is only 2,605. OMB is required to review these comments and address significant concerns before finalizing the rule. The agency intends to release a final rule by September 1st, with implementation beginning on October 1st, 2026 for new grants.

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