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Peters Bill to Protect Michigan Communities from Future Changes to Metropolitan Area Standards Signed into Law

Future Changes Could Threaten Access to Critical Federal Resources for at Least Six Michigan Communities

WASHINGTON, D.C. – Bipartisan legislation authored by U.S. Senator Gary Peters (MI), Chairman of the Homeland Security and Governmental Affairs Committee, to help protect communities in Michigan from losing access to important federal funding because of possible changes to the population threshold for metropolitan areas, was signed into law. Communities count on this designation for federal funding that goes towards important programs. The White House Office of Management and Budget (OMB) had previously proposed increasing the population threshold for metropolitan areas from 50,000 to 100,000 which could have threatened access to vital federal resources for communities across the nation, including six in Michigan. Cities that could have been affected by this change include Battle Creek, Bay City, Jackson, Midland, Monroe, and Niles-Benton Harbor. However, following calls from Peters, OMB announced it would halt the proposed change. Peters’ bipartisan bill will ensure that future modifications to this designation are carefully deliberated to prevent unintended consequences.

“Untested changes to metropolitan area standards could put communities throughout Michigan at risk of losing access to vital federal resources,” said Senator Peters. “This new law will ensure that the federal government carefully considers how changes to this classification may impact communities across the nation before they go into effect.”

Metropolitan statistical areas (MSAs) were created to standardize and identify the nation’s largest centers of population and activity. Metropolitan and non-metropolitan designations are used by agencies across the federal government to determine eligibility for funding and services. OMB’s previously proposed change could have impacted federal resources for nearly 150 communities across the nation. While losing MSA status may not necessarily result in a loss of federal funds, future changes to the designation should undergo careful consideration to prevent any unintended consequences.

The Metropolitan Areas Protection and Standardization Act will provide needed analysis and transparency by requiring OMB to collaborate with federal agencies to study and disclose the impacts to federal programs before any change to metropolitan area standards can be implemented. The bill will extend the public comment period for potential changes and ensure the public is aware of how MSAs are used to determine federal benefits. Finally, the legislation will also instruct OMB to publish a report on the estimated impact to domestic assistance programs for any proposed change to metropolitan area standards.

The Metropolitan Areas Protection and Standardization Act is supported by the U.S. Conference of Mayors, the National Rural Health Association, the National Association of Counties, the Michigan Municipal League, the Michigan Association of Counties, the Southeast Michigan Council of Governments, the Battle Creek, Michigan City Manager’s Office, Mayor Marcus Muhammad of Benton Harbor, Michigan, and Kinexus.