WASHINGTON, D.C. — Senator Susan Collins wrote a letter to Office of Management and Budget Director Russell Vought on July 6, urging him to drop certain portions of proposed federal grant rule modifications. Collins, a Republican from Maine, also asked for an extension of the public comment period by at least 90 days.

Collins stated that the proposed rule would "impose new, burdensome requirements on award recipients that would harm small and rural communities, undermine scientific and biomedical research, and conflict with Congress' control over the federal funding process." The proposed rule allows agencies to terminate discretionary grants if the agency determines the termination is in its best interest, or if the award does not accomplish program goals or agency priorities. Previous guidance allowed agencies to choose whether to include termination terms for awards not aligned with program goals or agency priorities.

The modifications remove administrative hearing requirements that would permit an entity to appeal termination decisions. "Allowing termination of awards with limited ability to appeal would inject uncertainty into the federal award process, especially for awards that span multiple years and phases and make these awards more costly," Collins said. She added, "This uncertainty could disincentivize scientific researchers and institutions from seeking the federal financial assistance they need to participate in multi-year, lifesaving trials." Collins cited clinical trials as an example, stating, "For example, the termination of clinical trials would leave patients without treatment and could well result in significant scientific and financial losses to both the recipient and the federal government." The proposed rule also mandates a senior appointee to conduct a pre-issuance review to determine if an award advances the president's policy priorities, even after the merit review process is complete.

Earlier, on July 1, Senate Democratic Leader Chuck Schumer and Senator Patty Murray wrote a letter to Russell Vought. Senate Democrats characterized the draft guidance as a "power grab" and "unlawful." They demanded that Vought "immediately rescind" the OMB's draft proposal. "This proposal dramatically expands agencies' authority to the point where the president could terminate or suspend any grant at any time for any reason and without any notice," Schumer said. Schumer added that the proposal "unlawfully seeks to substitute Congress's role in directing federal spending with the president's preferred priorities, and in doing so, makes it harder for every community and organization in the United States to fairly access federal funding." The American Association for Cancer Research also issued a press release criticizing the proposed rule and called on its members to submit comments before the July 13 deadline.

The American Association for Cancer Research stated, "If this OMB-proposed regulation is ultimately finalized, it will severely weaken the U.S. federal research grant program that has supported American innovation and medical breakthroughs for decades." The Office of Management and Budget had provided stakeholders 45 days to offer feedback on the proposed rule and had intended to finalize it by October 1.