Our Policy Experts

Matt Greller
Chief Executive Officer
mgreller@aimindiana.org
317-237-6200 x 224

Becca McCuaig
Chief Legal Counsel
bmccuaig@aimindiana.org
317-237-6200 x 225

June 2, 2026

Transportation

The House shared their draft bill – the BUILD America 250 Act – We are still reviewing all of the changes but so far these are the positive highlights:

• Local governments have retained access to federal funding with Surface Transportation Block growth,
• Locals will have 25% access to a historic increase to the bridge program and Safe Streets is continued and given funding certainty.
• Several discretionary grants like Rail Crossing Elimination and PROTECT grants also are included and there are new programs like a Surface Transportation Accelerator Grant (STAG) program with urban and rural set asides.

Members from Indiana on the House Transportation committee will be important as this bill moves forward.

2026 ARPA Report Update

Regardless of whether funds have been fully expended, all municipalities must submit their 2026 ARPA SLFRF (Rescue Plan) report to remain in compliance, unless they have been directly invited by the U.S. Treasury Department to complete the closeout process and have already submitted a closeout report.

The reporting deadline was April 30. Treasury has not yet announced a firm closing date for the reporting portal but important that communities complete this reporting.

Treasury is offering a series of Live Office Hours for noncompliant municipalities on Thursday, June 4, 11, and 18 at 2pm ET at the following link: https://ustreasury.zoomgov.com/j/1655896522. You can find Treasury’s Office Hours listed here: https://www.nlc.org/events/arpa-office-hours/

Telecommunications

H.R. 2289 -The American Broadband Deployment Act, would enact preemptions of local authority over communications infrastructure siting, permitting, and franchising. Due to initial concerns expressed the Act was removed from the U.S. House Rules Committee agenda after strong opposition from local government groups, including national partners. The Act would:

• Change the compensation localities are entitled to assess for use of public rights of way from “fair and reasonable” to limited to “actual and direct costs”, effectively forcing local residents to subsidize private business through a new unfunded mandate. At a time when there are several fiscal deficits hitting municipalities in Indiana.
• Impose a “deemed granted” penalty for exceeding these shot clocks, effectively allowing providers to conduct construction or excavation without local oversight.
• Weakens the effectiveness and enforceability of local cable franchises by allowing providers to unilaterally alter the terms of the agreement.
• Move dispute resolution to the FCC, instead of courts, structurally disadvantaging localities relative to providers in these disputes.
• H.R. 2289 will force local governments to subsidize highly profitable companies, while overriding residents’ concerns about safety and unsightly or sloppy construction.
• It will create confusion, delay, and increased conflict around communications infrastructure deployment.
• Local governments are not barriers to broadband deployment, and are in fact key partners in closing the digital divide.
• H.R. 2289 would fundamentally hamstring the ability of local governments to engage in responsible, efficient planning and permitting.

While removing H.R. 2289 from the schedule is a win, federal permitting reform remains a high priority in Congress. Aim will continue to monitor federal legislative developments and stay in contact with congressional representatives. As you have conversations with federal leadership, please voice your concerns.

Housing

The Housing for the 21st Century Act in the House and the ROAD to Housing Act in the Senate, have been combined into a single bill — the 21st Century ROAD to Housing Act. The bill aims to boost housing supply through improving existing programs, unlocking private capital, and reducing federal regulatory barriers.

The bill in current form does not preempt local land-use or zoning authority and avoids unfunded mandates.

These are positive movements and unlock needed dollars for demolition in CDBG and other important tools for local government. We are monitoring some of the regulations and oversight outlined in the Act. We will continue to update you on the potential of the Act moving forward.

The Act Passed House with Changes on May 20, 2026 and now moves back to the Senate.

New Office of Management and Budget Proposed Rule

On May 29, 2026, the Federal Office of Management and Budget (OMB) published a new proposed rule in the Federal Register that would rewrite the Uniform Guidance (2 CFR Part 200).  This would rewrite the government wide regulations for the management of federal grants, cooperative agreements and other forms of financial assistance under 2 CRF, subtitle A. A few key highlights include:

• Reclassifying 2 CFR from guidance to regulations, which would impact how future OMB amendments take effect across government agencies (i.e., they would do so more uniformly and presumably faster).
• Implementation of several of President Trump’s Executive Orders, including those on DEI and “gender ideology.” The rule says, “OMB, in consultation with DOJ and other agencies, proposes to amend paragraph (b) of § 200.300, to provide that, in administering Federal awards, to the maximum extent permitted by law, the Federal agency or pass-through entity must ensure that the Federal award is not used to fund, promote, encourage, subsidize, or facilitate:

• • • “Diversity, equity, and inclusion” (DEI) or “diversity, equity, inclusion, and accessibility” (DEIA) policies, principles, or practices that violate any applicable Federal anti-discrimination laws. This includes racial preferences or other forms of racial discrimination used by the recipient or subrecipient that violate any applicable Federal anti-discrimination laws, including activities where race or intentional proxies for race will be used as a selection criterion for employment or program participation (the “Unlawful DEI Provision”);
    • Gender ideology as defined in Executive Order 14168. Gender ideology includes theories or ideologies that deny the biological reality of sex or the sex binary in humans, or endorse or advocate for the notion that sex is a chosen or mutable characteristic (the “Gender Ideology Provision”)”The qualifier “to the maximum extent permitted by law” is intended to ensure that Federal agencies give due consideration to applicable authorizing legislation for their programs when applying this provision.”

• There is a new proposed s. 200.218, which consistent with EO 14281, proposes to ensure that federal financial assistance is not used to promote or support disparate impact liability.
• There is a new proposed rule s. 200.219 that would seek to ensure that federal funds are not used to directly or indirectly subsidize violations of the First Amendment.  This section is entitled “prohibition of discriminatory event services” and is designed to ensure public entities that receive federal funds do not discriminate on the basis of viewpoint, content, or subject matter of speech (including political, religious speech) in providing services for events, meetings or other expressive activities.
• There is also expanded authority to terminate awards.
• OMB proposed to add s. 200.303(f) which would require all recipients and subrecipients of federal financial assistance to participate in E-Verify.
• Revisions to s. 2002.205 would require each federal agency to design and execute a merit review process for all discretionary awards. As a part of that process federal agencies (through a senior appointee) must conduct a pre-issuance review, which must ensure the awards “demonstrably advance the President’s priorities” and must not be used to “fund, promote, encourage, subsidize, or facilitate” “Racial preferences or other forms of racial discrimination by the recipient, including activities where race or intentional proxies for race will be used as a selection criterion for employment or program participation;” “(ii) Denial by the recipient of the sex binary in humans or the notion that sex is a chosen or mutable characteristic;” “(iii) Illegal immigration; or (iv) Any other initiatives that compromise public safety or promote anti-American values.

Comments can be submitted before 7/13/26 here: https://www.regulations.gov/.