OMB requests $6.4M general fund for FY2026, plans fiscal‑responsibility unit to replace party fiduciary
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Summary
The Office of Management and Budget asked the committee for $6.4 million in general‑fund support for FY2026 and outlined plans to transition oversight of some federal grant administration from external party fiduciaries to an in‑house fiscal responsibility unit, and warned of NTIA changes that put a $27.1M BEAD/BID timetable on hold.
Julio A. Reimer Sr., director of the Office of Management and Budget, asked the Committee on Budget, Appropriations and Finance on June 10 to approve a $6,400,000 general‑fund FY2026 appropriation and described plans to form a fiscal responsibility unit that would take on many duties now performed by third‑party fiduciaries. Reimer said the unit — budgeted initially at $500,000 to stand up and staffed with a manager, a supervisor, two accountants, and two procurement officers (plus an additional senior accountant) — would formally replace the party fiduciary role by October 1, 2025.
Reimer said OMB’s unit would act as a turnaround agent for departments with repeated federal reporting failures, unresolved audit findings or failed drawdowns; he told the committee agencies would be reviewed and placed into the unit when they miss key compliance milestones.
On federal programs, Reimer briefed senators on the Territory’s $27,100,000 award under a broadband equity/access program (BEAD/BID), but said a June notice from the National Telecommunications and Information Administration (NTIA) has put BEAD timing and some program structures on hold. He said OMB expects BEAD projects could start October 1, 2025 if federal guidance is confirmed, but urged the committee to note the NTIA update.
The OMB director also discussed a $10,024,767 EDA Economic Adjustment Assistance grant for tourism and outdoor recreation projects and said the office will continue to manage indirect cost proposals (a new vendor is preparing an updated indirect cost plan for submission to Department of the Interior in the coming 60–90 days).
Reimer told senators replacing the party fiduciary model is intended to save roughly $2.4 million per year and to bring more direct territory control over federal grant administration; he said the OMB will coordinate with Finance on the transition and follow federal requirements for any programmatic transfer of duties.
OMB requested $500,000 in one‑time implementation funds and said it had filled nine vacancies in FY2025 but still required additional staff in budget operations and federal programs to carry out the transition and to reduce repeated audit findings across agencies.