WASHINGTON, D.C. — The Office of Management and Budget published proposed rules in May 2025 requiring senior political appointees at federal agencies to review all discretionary federal grants for alignment with President Trump’s policies and executive orders. The proposal would allow agencies to suspend or terminate grants deemed misaligned with administration priorities.

The proposed regulations implement an August executive order issued by President Trump. They ban federal funding for programs supporting diversity, equity and inclusion (DEI), gender-affirming care—which the administration refers to as “child sex mutilation”—and voter registration efforts. They also prohibit grants that promote “disparate impact liability theories” or “discriminatory event services,” and eliminate what the administration calls “Green New Scam grant requirements.” The rules would bar exclusion of faith-based organizations from grant consideration and forbid funding for issue advocacy or political activities.

The Office of Management and Budget stated it aims to correct what it described as a lack of transparency and accountability under the Biden administration, which it said led to “woke” programs receiving federal funds and wasting taxpayer resources. The proposal restricts the use of indirect cost funding for publishing in scientific journals unless required by statute or pre-approved by the agency.

Jules Barbati-Dajches, analyst for the Union of Concerned Scientists’ Center for Science and Democracy, said, “Placing political appointees in the position to review and determine funding would replace merit with loyalty to a political leader.” Sarah Spreitzer, vice president and chief of staff for government relations at the American Council on Education, said, “This is likely a historic document because this is the Trump administration trying to implement a lot of the things that they’ve been trying to do within the first year and a half around the federal science agencies.” She added, “This would clarify and strengthen their ability to terminate discretionary grants for discretionary reasons,” and expressed concern that such authority could be politicized and undermine the scientific peer-review process.

The proposal does not cap indirect cost reimbursement rates for federal research grants at 15 percent, contrary to prior expectations. OMB said it will not accept public comments on indirect cost rate negotiations during the 45-day comment period because no changes to that system are proposed. The regulations, known as “uniform guidance,” govern the entire federal government’s grant-making process. After the comment period, OMB and federal agencies will decide whether to revise the rules before finalizing them as soon as summer 2026.