40+ Agencies Team Up to Rewrite Federal Grant Regulations
Published Date: 5/29/2026
Proposed Rule
Summary
This new rule updates how federal financial help is given and managed across many government agencies. It affects anyone who gets federal grants or aid, making the process clearer, fairer, and easier to follow. Changes kick in soon and could impact how money flows and how quickly folks get support.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Tighter Rules for Federal Grants
OMB proposes major changes to the rules that govern federal grants, cooperative agreements, and other federal financial help. If you receive federal grant money, these changes aim to increase transparency, accountability, and oversight and could change how federal money flows or how quickly support is delivered. The proposal is open for comment through July 13, 2026.
End to DEI-Based Award Preferences
The proposal would stop unlawful identity-based Diversity, Equity, and Inclusion (DEI) mandates and preferences in federal award programs and require merit-based decisionmaking consistent with Executive Orders and Justice Department guidance. If you applied for or received federal grant funding under DEI-based requirements, those requirements would be removed or barred under the proposed changes.
Stronger Recipient Accountability Rules
The proposed rule would increase accountability for grant recipients, including holding recipients responsible when they misuse funds and limiting use of federal funds for recipients that partner with foreign adversaries. The changes aim to prevent fraud, waste, and misuse and to ensure awards are used for authorized public purposes.
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Key Dates
Department and Agencies
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