US OMB grant rule faces widespread opposition

The Office of Management and Budget has issued a proposed rule that would shift federal grant approvals to senior political appointees, replace the existing uniform guidance, and impose new limits on funding for projects deemed “woke.” The rule could affect up to $1 trillion in annual grant funding across dozens of agencies and would allow agencies to cancel awards more easily, bar collaboration with adversarial nations and restrict diversity, equity, inclusion and LGBTQ‑related activities.

Opposition is mounting. A public comment period that closed on July 13 drew nearly half a million responses, the majority opposing the changes. Groups such as Stand Up for Science and the Education Law Center, along with dozens of nonprofit, state, local and research organizations, have warned of legal challenges and urged the administration to withdraw the proposal. The OMB is expected to review the comments and issue a final rule by Oct. 1, ahead of the fiscal 2027 grant cycle.