White House OMB grant reform proposal criticized as political cronyism

The Office of Management and Budget (OMB) has issued a proposed rule that would reshape how discretionary federal grants are awarded, requiring that they “demonstrably advance the President’s policy priorities.” The rule would let senior political appointees review most awards, terminate multi‑year grants at will, bypass peer‑review recommendations, and limit public notice requirements under broad national‑security exemptions.

Public Employees for Environmental Responsibility (PEER) and the American Civil Liberties Union (ACLU) submitted formal comments urging the administration to withdraw the proposal. PEER warned that the rule would institutionalize political cronyism across more than $1 trillion in annual public funds and destroy the independence of American science. The ACLU said the rule would give the government unlawful authority to deny or cut funding based on discriminatory criteria, threatening essential services such as education, health care, housing, and disaster relief, and undermining civil‑rights protections.