Federal Grant Process Amendments

Utah changes federal funding approval rules

Beginning May 6, 2026, Utah changes approval rules for new federal funds and programs. The rules cover executive agencies, the Judicial Council, and the State Board of Education. The basic approval limit rises from $1 million to $5 million a year. Requests qualify only when they need no added permanent staff and no new state matching or implementation money. The governor or appropriate state body must approve or reject these requests within three months. Medium-impact requests involve over $5 million but under $25 million yearly, more than zero but fewer than 11 permanent full-time-equivalent employees, or $1 to $1 million in new state money per fiscal year. Outside session authorization, these requests need state approval followed by Executive Appropriations Committee review, generally within three months of formal submission where feasible. That committee can recommend acceptance, rejection, or a special legislative session. High-impact requests involve $25 million to under $100 million yearly, at least 11 permanent full-time-equivalent employees, or over $1 million in new state money per fiscal year. They require state approval and legislative approval before acceptance. Requests that could bring at least $100 million yearly face additional steps when not already authorized during a legislative session. They need state approval and a committee recommendation before the agency formally applies to the federal government. Agencies must then send them to lawmakers within 120 days and cannot commit the state before legislative approval. Medicaid and CHIP requests have an earlier deadline tied to the next annual or applicable special session. For these largest requests approved on or after October 1, 2025, legislative leaders must create an oversight committee. It reviews program and funding plans and recommends appropriations. Approved requests are reported to legislative reviewers; missing award documents must arrive before spending. Noncompliance can lead to returned funds or General Fund cuts smaller than, equal to, or larger than federal funds received. The law provides no appropriation or direct household benefit change.