Office of Management and Budget proposes sweeping overhaul of federal grantmaking rules

The Office of Management and Budget (OMB) has issued a Notice of Proposed Rulemaking that would dramatically reshape the federal grantmaking system, known as the Uniform Guidance. The proposals seek to increase transparency, accountability and oversight while reversing recent progressive requirements. Key changes include shifting final grant decisions to political appointees, allowing grants to be cancelled at any time for undefined reasons, and curbing international collaborations. The draft also proposes treating grantmaking more like contracting, limiting the role of subject‑matter experts, and expanding executive control over funding for research, infrastructure, schools, agriculture and other programs.

The public comment period runs until July 13 2026, with an intended effective date of October 1 2026 for fiscal year 2027. Critics warn that the reforms could make federal funding unstable, subject to abrupt political shifts, and reduce the partnership model between agencies and grantees, including faith‑based and nonprofit organizations.