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OMB Releases Proposed Rule on Federal Financial Assistance

June 4, 2026

This article was updated June 24 to include ACR’s likely feedback regarding nine proposals included in the rule.

ACR® will submit organizational comments to the proposed rule released by the federal Office of Management and Budget (OMB) to revise the Guidance for the Regulation for Federal Financial Assistance. The proposal represents a significant update to the foundational guidance governing all federal grants and cooperative agreements, including the framework for federal awards distributed to research universities, nonprofits and other recipients. The notice states that the overarching goal of OMB's proposed revisions is to improve transparency, accountability and oversight for how federal taxpayer dollars are used in the context of federal grantmaking.

Key topics include oversight and accountability standards, expanded agency discretion in award design and termination, “merit-based” award selection, new national policy requirements affecting federal funding, and reducing administrative burden of federal compliance requirements. The proposal would give agencies the authority to terminate grants after awarded if they are determined to no longer be aligned with agency priorities, as well as request agencies to designate a political appointee to conduct pre-issuance reviews of discretionary grant awards. ACR is considering providing feedback regarding:

  • Proposal – §200.202 — Program planning and design
  • Proposal – § 200.204 — Notices of funding opportunities
  • Proposal – §200.205 — Federal agency review of merit of proposals
  • Proposal – §200.206 — Federal agency review of risk posed by applicants
  • Proposal – §200.220 — Prohibition of using Federal funds for covered foreign collaborations
  • Proposal – §200.340 — Termination and suspension
  • Proposal – §200.432 — Conferences
  • Proposal – §200.454 — Memberships, subscriptions, and professional activity costs
  • Proposal – §200.461 — Publication and printing costs

ACR is collecting feedback from its members to provide comments to the proposed rule (contact information below). When submitting comments, be sure to indicate the specific proposal(s) above or other comments are directed toward.

OMB is accepting comments about the proposed rule through July 13. ACR joined a community effort and coordinated response asking OMB for an extension to the 45-day deadline.

For more information, if you have questions, or if you have commentary on the proposed rule you would like to share with ACR, contact Katie Grady, ACR Government Affairs Director.

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