OMB Proposes Major Changes to Federal Grant Rules: Analysis and Upcoming Webinar
Published June 15, 2026
By AACOM Government Relations
Advocacy Federal Policy OME Advocate
- On May 29, 2026, the Office of Management and Budget (OMB) released a proposed rule, Regulation for Federal Financial Assistance, that would significantly revise the federal framework governing grants, cooperative agreements and other forms of federal financial assistance. OMB intends to issue a final rule by October 1, 2026.
- Among the proposed changes, senior political appointees would be required to review and approve discretionary research grants before issuance and agencies would have expanded authority to suspend or terminate awards that do not align with presidential priorities. The rule would also standardize award administration across government, impose new requirements on grantee selection and funding decisions to be aligned with the Administration’s priorities and significantly limit the types of costs that are allowable under federal awards.
- OMB states that the proposal is intended to increase transparency, oversight and accountability, clarify the legal status and implementation of government-wide grant requirements and reduce administrative burden on agencies and funding recipients.
- Interested parties are encouraged to review the proposal and submit comments by July 13, 2026. AACOM also encourages COMs to share comments and concerns with aacomgr@aacom.org.
- Review Venable LLP's summary and register for its June 17, 2026, webinar to learn more.