OMB Pick Backs Trump Control Over $1 Trillion in Grants as Democrats Warn of Political Purge
Updated
Updated · POLITICO · Jun 17
OMB Pick Backs Trump Control Over $1 Trillion in Grants as Democrats Warn of Political Purge
1 articles · Updated · POLITICO · Jun 17
Summary
More than $1 trillion in annual federal grants would be steered by political appointees under a Trump administration plan that OMB deputy nominee Hal Duncan defended at his Senate confirmation hearing.
Duncan said agency political employees would become the “ultimate deciders” so the White House can block funding for fraud, “divisive DEI ideologies,” “woke gender ideologies” and illegal immigration.
The proposed rules, unveiled last month and expected to be finalized as soon as this summer, would let appointees approve or kill awards to states, local governments, schools, nonprofits and community groups.
Patty Murray called the approach a potential “slush fund” to reward allies and punish critics, while Ron Johnson said it would direct money toward causes Trump campaigned on.
Duncan is already acting in the job, and both the Homeland Security and Budget committees must vote in coming weeks before his nomination can reach the full Senate.
With expanded powers to terminate grants, how can organizations plan long-term projects reliant on federal funding?
What new compliance burdens will these sweeping grant reforms place on small organizations and local governments?
How might centralizing grant approval impact everything from scientific research to local community services?
Political Control Over Federal Grants: The 2026 OMB Overhaul and Its Threat to U.S. Science and Innovation
Overview
The Office of Management and Budget (OMB) has proposed a major overhaul of federal grant regulations, aiming to unify and streamline rules across about 40 federal agencies. While supporters say this will improve efficiency, critics warn it could give the government unprecedented political control over how federal funds are awarded and managed. The proposed Uniform Grants Regulation is currently open for public comment until July 13, 2026, with a final rule expected by October. This change could significantly impact universities, nonprofits, and research institutions, making it crucial for stakeholders to voice their concerns during the comment period.