White House Office of Management and Budget Proposes Changes to Federal Grant Rules

A draft regulation issued by the White House Office of Management and Budget on May 29 would revise 2 CFR Part 200, the set of rules governing federal financial assistance. The document runs more than 100 pages and remains open for public comment until July 13, 2026.

The rule would increase the authority of presidential appointees to select, award, suspend, or terminate grants. It would also require agencies to align spending decisions with evolving national interests and to obtain pre-approval for certain expenditures such as conference travel.

Under the draft, peer-review panels would shift from decision-making to advisory roles. Agencies could end an award at any time by citing inconsistency with national priorities, without additional justification or appeal.

More than 70,000 comments have been submitted so far. Elizabeth Ginexi, a former National Institutes of Health program officer, posted guidance recommending that commenters cite specific sections such as §200.340 on grant termination and describe direct effects on their work or community.

The American Physical Society stated that the proposal would revise the entirety of federal grantmaking and cooperative agreements while allowing only a 45-day comment period. The American Association for Cancer Research described the rule as a major threat to the National Institutes of Health mission.

America warned that the changes would move federal research funding away from scientific merit, collaboration, and stability. Members of Congress have also received communications from constituents and organizations regarding the draft rule.