Office of Management and Budget grant rule draws criticism from universities, lawmakers and advocacy groups

The White House Office of Management and Budget (OMB) has issued a proposed rule to overhaul the Uniform Guidance that governs federal financial assistance. The draft would give senior political appointees authority to review, modify or terminate most federal grants, replace merit‑based peer review with political oversight, restrict research on topics such as diversity, gender identity and immigration, and impose new administrative burdens.

A coalition of more than 40 U.S. lawmakers, leading universities, research societies, health‑care groups, civil‑rights organizations and advocacy coalitions—including the National Council of Medical Education, the Alliance of Specialty Medicine, Public Employees for Environmental Responsibility, the ACLU and the National Center for Medical Education—have submitted formal comments urging OMB to withdraw the rule. They warn that the changes would politicize scientific funding, weaken the nation’s innovation ecosystem, jeopardize essential services, and undermine civil‑rights protections.

During a House Appropriations Subcommittee hearing, OMB Director Russell Vought confirmed the agency is developing an artificial‑intelligence tool to flag grants that appear misaligned with the administration’s priorities, but said it would not replace agency officials. The administration argues the revisions are intended to improve transparency, accountability and alignment with presidential policy goals.