Question
In the morning I find spots on my lawn that look like each blade of grass is covered in a white very downy like substance. Then the spot turns brown and starts to die. Is this some type of fungus? How can I get rid of it and or stop it from happening?

Answer
The situation which you describe appears to be downy mildew. You can find out more about it HERE.
As for a remedy, if it is indeed downy mildew , apply a fungicide labeled for turf. You might not be able to save the infected grass but such a program will protect new growth.