Action Alert: Oppose OMB’s Proposed Rule on Federal Financial Assistance

November 10, 2026 — Today is a Day of Action by a broad coalition of organizations in multiple sectors against the Office of Management and Budget’s (OMB’s) proposed rule titled “Regulation for Federal Financial Assistance.” Congress must be informed that the end result of this rule being implemented will be fewer families housed and fewer affordable housing units built as the rule would create significant uncertainty for housing providers and would threaten the stability of affordable housing programs.

The OMB proposed rule would allow federal agencies to terminate or suspend certain federal awards for vague reasons, including when an award is deemed not to be in “the national interest,” or to impose new terms and conditions on grants after they have been awarded. The latter could lead to unpredictable changes in reporting, monitoring, financial, and administrative requirements, making it increasingly difficult for housing providers to operate programs effectively.

Congress should also be aware of HUD’s efforts to implement OMB’s proposed rule even though it has not been finalized. The Department is trying to implement provisions of the rule by moving forward with its new HUD Unified Grants System (HUGS), its new voucher funding mechanism (Project Voucher), and by incorporating by reference Executive Orders into guidance documents and other documents.

We encourage all of NAHRO’s members to educate members of Congress about the harmful effects of this rule on their communities by using NAHRO’s advocacy center to send an email today.