Jan. 08, 2026
HARRISBURG, PA — State Rep. Brenda Pugh (R-Luzerne) today emphasized the importance of her legislation,
House Bill 1949, which is designed to ensure clear documentation, transparency and accountability when the Commonwealth accepts and administers federal grant funding.
“The need for clarity is illustrated by Pennsylvania’s recent receipt of approximately $193 million in federal funding for rural health care initiatives,” Pugh said. “While the funding itself is welcome and necessary, the public discussion surrounding large federal awards has shown how confusion can arise regarding the origin of funds, the role of the Commonwealth and the rules governing how such money may be used.”
House Bill 1949 is designed to:
• Require clear identification of federal funding sources.
• Ensure contracts and agreements accurately reflect the Commonwealth’s role as an administrator, not the funding source.
• Require administering agencies to formally acknowledge and comply with all applicable federal guidelines, conditions and restrictions tied to the funding.
• Strengthen transparency and auditability of grant expenditures.
• Reduce public confusion surrounding major federal funding announcements.
“House Bill 1949 is about facts, not politics,” Pugh continued. “When hundreds of millions of dollars are involved, the public, providers and grant recipients deserve a clear understanding of where the money comes from, who administers it and what rules apply.”
Federal funds operate under different rules than state-funded programs. Federal requirements may include eligibility standards, procurement restrictions, reporting obligations, audit requirements, and vendor or technology limitations, such as those imposed under the John S. McCain National Defense Authorization Act (NDAA). Failure to comply with applicable federal requirements can result in repayment or clawback of funds, even when noncompliance is unintentional. House Bill 1949 helps reduce this risk by ensuring recipients understand from the outset when federal rules apply and what obligations must be met.
“This bill is about protecting the public, grant recipients and the Commonwealth,” Pugh concluded. “Transparency and clarity ensure federal dollars are used properly and that recipients are not placed at risk because of confusion over which rules apply.”
House Bill 1949 was referred to the House State Government Committee in October 2025, where it awaits a committee vote.
Representative Brenda Pugh
120th District
Pennsylvania House of Representatives
Media Contact: Melissa Fox
717.260.6522
mefox@pahousegop.com
RepPugh.com / Facebook.com/RepBrendaPugh