Governor Kotek urges Trump administration to withdraw proposed federal grant rule

SALEM, Ore. (KTVZ) -- Governor Tina Kotek is calling on the Trump administration to withdraw a proposed federal rule that would change how billions of dollars in federal grants are distributed and managed.

In formal comments submitted to the Office of Management and Budget, the state warns the proposal could inject politics into funding decisions, increase bureaucracy, and disrupt programs that support essential services across Oregon.

“Federal tax dollars should be awarded based on the needs of communities and the merits of projects — not shifting political priorities,” Kotek said. “This proposal would make it harder for states like Oregon to deliver the services people rely on every day.”

According to the governor’s office, Oregon relied on about $21.5 billion in federal grants in fiscal year 2025. Those funds support a wide range of services, including wildfire preparedness, disaster recovery, healthcare, housing, education, transportation, and food assistance.

State officials say the proposed rule would give political appointees more authority to approve or cancel grants using what they describe as vague standards, potentially creating uncertainty for state and local governments, tribes, nonprofits, and other organizations that depend on consistent funding.

The comments also raise concerns about increased administrative requirements, higher costs, and delays in delivering services if the rule is implemented.

Kotek is also asking federal officials to extend the public comment period by at least 90 days, saying more time is needed for states and stakeholders to fully evaluate the potential impacts.

The full response from the State of Oregon is available through the governor’s office website.