American Policy Pulse

Trump Moves to Gain Unprecedented Control Over Federal Funding via OMB Rule

Trump Moves to Gain Unprecedented Control Over Federal Funding via OMB Rule

Key Questions

What is the proposed OMB rule and its main provisions?

The rule would allow political appointees to override merit-based federal funding decisions and ban disparate-impact analysis in grant evaluations. It faces opposition due to concerns over politicizing funding for research and social programs.

Why has Colorado formally opposed the OMB rule?

Governor Jared Polis cited risks to $1.21 billion in federal grants and worries that funds could be used as a political tool against DEI programs. The comment period ends July 13.

What broader impacts could the OMB rule have if implemented?

It could fundamentally reshape federal research funding and social programs by prioritizing political appointee control over merit-based processes. This has drawn broad opposition from states and stakeholders.

The Trump administration's OMB rule allowing political appointees to override merit-based federal funding and banning disparate-impact analysis faces broad opposition. Comment period ends July 13. Colorado has formally opposed the rule, citing $1.21 billion in federal grants at risk. This could fundamentally reshape federal research and social programs.

Sources (2)
Updated Jul 17, 2026
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