Office of Management and Budget Proposes Sweeping Changes to Federal Grant Guidance, Raising Concerns Among Nonprofits and Researchers
The U.S. Office of Management and Budget (OMB) has proposed significant changes to its Uniform Guidance, which governs most federal grantmaking to nonprofits, state, local, and Tribal governments. These proposed changes, if implemented, could introduce substantial risks and instability for federal grant recipients. Specifically, the revisions would grant the executive branch broad discretion over federal grants, potentially allowing agencies to withhold, terminate, or suspend grants without cause, add new terms mid-performance, and disqualify proposals not aligning with presidential policy priorities. Federal agencies could also determine discretionary awards based on partisan ideology rather than objective criteria, potentially excluding certain grantees. These changes threaten congressionally funded programs assisting underserved communities and could bar federal funds from being used for certain diversity, equity, and inclusion (DEI) efforts. The OMB received nearly 500,000 public comments expressing co... 
