OMB Releases Proposed Rule on Federal Financial Assistance

ACR^® is exploring a coordinated response and advocacy strategy related to a 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.

OMB is accepting comments on the proposed rule through July 13.

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.