White House Proposes 412-Page Rewrite Tightening Control Over $1 Trillion in Federal Grants
Updated
Updated · Bloomberg · May 28
White House Proposes 412-Page Rewrite Tightening Control Over $1 Trillion in Federal Grants
1 articles · Updated · Bloomberg · May 28
A 412-page Office of Management and Budget proposal published Thursday would sharply expand White House control over how federal grant money is awarded and used.
More than $1 trillion a year in assistance is affected, spanning research grants, aid to local governments, support for small businesses and farm subsidies.
The rewrite is described as a far-reaching overhaul that could become the biggest change in decades to the rules governing federal financial assistance.
If adopted, the changes would give the administration greater influence over both who receives federal funds and what recipients are allowed to do with them.
With a $1 trillion grant system overhaul, what are the unforeseen risks to local economies and national innovation?
How will new grant rules affect research and services that may not align with short-term government priorities?
How will 'performance-based' funding be measured for grants in basic research or long-term social support programs?
The Federal Grant Overhaul: How New Policies and Legal Challenges Are Reshaping $130 Billion in U.S. Funding
Overview
The federal grants landscape is undergoing major changes as the White House pushes to rewrite grant policies and reduce spending, leading to immediate disruptions. Recently, a federal judge in D.C. issued a temporary stay on a proposed funding freeze, just minutes before it was set to take effect, to allow more time for legal review. This is the second legal challenge in a week against the administration’s broader goal of cutting federal spending. These developments are expected to significantly impact major federal departments, highlighting a period of uncertainty and transformation for federal grant programs.