New Rules Proposed for Grants Issued by Federal Agencies

by | May 29, 2026 | 0 comments

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The Trump administration has proposed changes to the rules on how grants will be issued by Executive Branch agencies, including the Department of Housing and Urban Development and the Small Business Administration.

The proposed changes will emphasize “merit-based selection” of award recipients, prevent awards from being issued to entities “with a history of questionable practices or poor financial management,” and clarifying the right of agencies to terminate discretionary awards that are considered “inconsistent with program goals or agency priorities.”

The changes will also eliminate fixed amount awards and subawards and enable federal agencies to enact “appropriate monitoring and oversight” of recipients. The Office of Management and Budget put forth the changes after declaring federal grants have been used “to promote a ‘woke’ policy agenda that did not reflect the values of the vast majority of the American public,” thus necessitating the need for strong internal controls at federal agencies and enhanced oversight regarding how federal dollars are spent.”

Public input on the proposed changes is being accepted for the next 45 days.

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