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White House Proposal Would Make Federal Grant Guidance Into Binding Rules

This change gives political appointees authority to review and override agency merit decisions, reshaping research collaborations, funding priorities, local grants and allowable expenses.

Overview

  • OMB published the proposal on May 29 to convert the Uniform Guidance into binding regulations that require senior political appointees to conduct pre-issuance reviews of discretionary awards.
  • The rule has drawn broad public attention with nearly 99,000 comments filed in the Federal Register and a July 13 comment deadline now days away.
  • Key provisions would expand agencies’ power to suspend or terminate grants mid-project, restrict certain expenses such as publication fees and society memberships, and limit collaborations with specified foreign partners.
  • Lawmakers from both parties and major scientific and public-health groups have pressed OMB to withdraw or revise parts of the draft, with letters from Senate Minority Leader Chuck Schumer and Sen. Susan Collins and coordinated statements from research organizations.
  • If finalized as proposed the rule would take effect Oct. 1 for new awards and incremental funding, but legal challenges, congressional pressure and remaining public comments could change the timing or content and create new uncertainty for researchers, local governments and investors.