OMB Proposes Government-Wide Rewrite of Federal Grant Rules – Public Comments Show 94% Opposition
Key Questions
What is OMB proposing in its rewrite of federal grant rules?
OMB has proposed changes to 2 CFR Part 200 that expand agency discretion over merit review, termination for convenience, and anti-DEI provisions. The rule was published in the Federal Register with a 45-day comment period ending July 13, 2026.
What does analysis of public comments show about opposition to the proposal?
A data-driven review found 94% of comments oppose the rule, driven by grassroots efforts and form letters citing politicization and sidelining of peer review. Over 80,000 comments have been filed, with OMB confirming no extension to the deadline.
Which lawmakers have raised concerns about the proposed grant rule changes?
Senators Collins and Raskin, along with Senate Democrats, have sent letters expressing concerns. Rep. DeLauro held a hearing highlighting a 34% drop in NIH awards and political delays at agencies including NSF, Interior, and DHS.
How could the rule affect cancer research grants according to ASCO?
ASCO warned that allowing termination based on 'agency priorities' and political pre-issuance review would undermine competitive stability for cancer research grants. Higher education groups similarly cautioned that control would shift toward political appointees.
What state and tribal perspectives have been noted on the federal grant rule?
NYSAC analysis highlights impacts on every county in New York State. Tribal groups have raised concerns ahead of the deadline, with guidance emphasizing trust obligations and avoiding DEI framing in comments.
OMB's proposed rewrite of 2 CFR Part 200 is now published in the Federal Register, with a 45-day comment period ending July 13, 2026. The rule expands agency discretion over merit review, termination, and anti-DEI provisions. New: A data-driven analysis of public comments reveals 94% opposition, grassroots nature, form-letter campaigns, and specific objections (politicization, peer review sidelining). Lawmakers (Collins, Raskin) raise concerns; OMB confirms no extension; over 80,000 comments already filed. Congressional pushback intensifies – Senate Democrats sent letter, Rep. DeLauro held hearing documenting 34% decrease in NIH awards, political review delays at NSF/Interior/DHS, and Vought admitted agencies are already implementing via executive order. NYSAC analysis adds state-level perspective. ASCO filed detailed comments warning that termination for 'agency priorities' and political pre-issuance review threaten competitive grant stability for cancer research. Higher education groups also warn rule would shift control to political appointees. Tribal concerns highlighted as deadline nears; expert guidance on avoiding DEI framing and citing trust obligations. Critical policy signal update.