2026-17239Proposed RuleSignificantWallet

EDGAR Gets a Boring Bureaucratic Tune-Up

Published Date: 8/24/2026

Proposed Rule

Summary

The Secretary of Education proposes to amend the Education Department General Administrative Regulations (EDGAR) and other provisions in 2 CFR parts 3474 and 3485 to update the regulations and better align them with other U.S. Department of Education (Department) regulations and procedures, and to include technical updates from the Office of Management and Budget's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards published in the Federal Register on April 22, 2024. The Department intends to finalize these regulations in late 2026.

Analyzed Economic Effects

11 provisions identified: 5 benefits, 5 costs, 1 mixed.

Stop Publishing Grant Notices in FR

The Department would no longer be required to publish grant application notices in the Federal Register and would instead put them in application notices (for example, on Grants.gov). The Department estimates this change would save about $158,451 per year in staff time, about $241,250 per year in Federal Register publication fees, and an annualized benefit of about $399,701 per year (10-year horizon).

Preference For Lower Indirect Costs

The Secretary may give competitive preference to applicants who propose charging indirect costs below their negotiated rate, shifting funds from indirect to direct project costs. Using the Department's baseline examples, a 25% indirect baseline on a $750,000 award implies $150,000 to indirect costs; lowering the rate to 20% would move about $30,000 from indirect to direct costs in the example.

Continuation Awards Can Be Reduced

The Secretary would have clear authority to consider unspent or unobligated funds and other available information when setting continuation award amounts, including reducing continuation awards or choosing not to make a continuation determination. The Department clarifies that provisions of the General Education Provisions Act do not apply to reductions in continuation awards.

Clarify Termination For Convenience

The Department would clarify its authority to terminate discretionary awards for convenience, consistent with procurement contract practices. The changes also add temporary suspension provisions similar to procurement rules.

Broader Evidence Framework Definitions

The Department would revise definitions of evidence tiers (e.g., experimental study, strong evidence, moderate evidence) and add a new 'evidence framework' definition that removes mandatory reliance on the What Works Clearinghouse and allows additional approaches to verify rigor.

Must Prove Nonprofit Status

Applicants that claim nonprofit status would be required to provide documentation to prove that status rather than leaving that documentation optional. The change replaces prior 'may' language with a 'must' requirement for proof of nonprofit status.

Clarify Frontloading Grant Funds

The Department would add a rule explaining how it may frontload funds for a multi-year project and outline grantee responsibilities when frontloading is used. This codifies the Department's existing ability to provide larger sums earlier in a multi-year award.

Approval Doesn't Guarantee Future Funding

The proposed rules would add language making clear that approving an application does not obligate the Federal Government to provide additional funding for the award in the future. Approval of a grant this year does not create a guarantee of future-year funding.

Move Away From Mailed Unsolicited Applications

The Department proposes to update procedures so that unsolicited applications would no longer be submitted by physical mail and would instead follow the Department's electronic submission practices. The change reflects the Department's move away from paper applications.

Grantees Must Follow Executive Orders

The Department would revise rules to require grantees in State-administered programs to comply with Executive orders in addition to statutes, regulations, and approved applications. This aligns Part 76 with Part 75 requirements.

Merit Hiring and Speech Protections

The Department would require grantees to ensure hiring, admissions, promotions, and compensation for grant-funded activities are based on merit and high standards, and that employment practices do not compel statements of political belief. Grantees would also need applicable policies protecting freedom of speech and inquiry.

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Key Dates

Published Date
Comments Due
8/24/2026
9/23/2026

Department and Agencies

Department
Independent Agency
Agency
Education Department
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