Federal Grantmaking and Regulatory Overhaul
Key Questions
What changes does OMB propose for federal grant guidance?
OMB proposed converting grant guidance into binding regulations that include political appointee review, DEI restrictions, and broader termination authority. The changes are scheduled to take effect in October 2026.
What was the outcome of the court ruling on IRS Notice 2025-42?
A federal court vacated the notice, restoring the 5% safe harbor for renewable energy projects. The decision affects tax treatment for certain clean energy investments.
How might E-Verify requirements affect federal grant recipients?
A proposed rule would mandate E-Verify participation for organizations receiving federal grants. This would expand employment eligibility verification across grant-funded programs.
OMB proposed converting grant guidance into binding regulations with political appointee review, DEI restrictions, and expanded termination authority (effective Oct 2026). A federal court vacated IRS Notice 2025-42 restoring the 5% safe harbor for renewable energy projects. E-Verify mandatory participation proposed for grant recipients. The White House is resisting refunds of illegally collected tariffs despite a Supreme Court ruling. CFTC is moving to regulate prediction markets while allowing most sports contracts.