OMB Proposes Major Federal Grantmaking Regulatory Update

The White House Office of Management and Budget (OMB) has proposed a sweeping revision to the Uniform Guidance (2 CFR Part 200), the government-wide framework governing how federal agencies award and manage grants and cooperative agreements. Released on May 29, the proposed rule would fundamentally change federal grantmaking requirements affecting universities, nonprofits, professional societies, research institutions, and other organizations that receive federal financial assistance.  

Key proposed changes include:  

• Converts the Uniform Guidance into a more formalized regulatory structure.  

• Increases Executive Branch oversight of discretionary awards, including additional senior political review.  

• Expands compliance, certification, and reporting requirements, including new restrictions on international collaborations.  

• Broadens agency authority to suspend, terminate, or discontinue awards. 

The Uniform Guidance serves as the foundation for federal financial assistance programs across the government, including those that support scientific research, education, and innovation. OMB describes the proposal as an effort to modernize federal grant administration, improve accountability, and establish a more consistent government-wide framework for managing federal awards. 

Among the most significant proposed changes are provisions that would increase Executive Branch oversight of discretionary federal awards, including additional review by senior political leadership before certain awards are finalized. While agencies would continue to utilize existing merit review and technical evaluation processes, the proposal would mandate and expand senior-level review of discretionary funding decisions.  

In addition, the proposal would expand compliance and certification requirements for applicants and recipients of federal financial assistance. Universities, nonprofits, professional societies, and research institutions may face additional administrative requirements related to eligibility, reporting, and award management. Stakeholders are evaluating how these changes could affect federally funded research and innovation. 

The proposal also arrives at a time when federal agencies are navigating broader discussions regarding research priorities, technology competitiveness, workforce development, and the role of federal investment in maintaining U.S. leadership in science and engineering. 

OMB is accepting public comments on the proposal through July 13, with implementation currently targeted for October 1, 2026. Given the broad reach of the Uniform Guidance across government agencies and assistance programs, ASME members are strongly encouraged to participate in the public comment period and provide input on how proposed changes may affect your institution, federal research objectives, and broader U.S. competitiveness.  

Please email the ASME Government Relations team at GR@asme.org with any questions about the proposed rule or how to submit a public comment. Messages should align with the ASME Society Policy 15.1 on Public Affairs and Public Statements.