OMB Releases New Guidance on Federal Grants

On Thursday, May 28, the Office of Management and Budget (OMB) announced significant pending changes to the Uniform Guidance (2 C.F.R. Part 200), which governs administrative requirements, cost principles, and audit standards for federal awards, along with related agency-specific adoptions and deviations. The proposed changes incorporate several requirements stemming from recent executive orders, including provisions related to “DEI programs, gender-affirming care, gender ideology, and grant terminations.” Some of the proposed changes include requiring agencies to seek approval by a senior appointee before issuing award notices, requiring recipients (other than States) and subrecipients to provide a brief justification for drawing down payments to both their funding agency and pass-through entity, and eliminating fixed amount subawards. The changes are set to be formally published in the Federal Register on May 29, 2026. Comments on the proposed rule will be due to OMB within 45 days after the notice is published in the Federal Register.