Russell Vought, director of the Office of Management and Budget (OMB), during a television interview at the White House in Washington, DC, US, on Monday, July 7, 2025. President Donald Trump unveiled the first in a wave of promised letters that threaten to impose higher tariffs rates on key trading partners, including levies of 25% on goods from Japan and South Korea beginning Aug. 1. Photographer: Al Drago/Bloomberg via Getty Images

New US grant rules proposed: agencies can cancel at any time

The Trump administration issued an executive order last August intended to alter US government grant funding procedures. Under previous rules, peer reviewers evaluated scientific quality and feasibility, and agency experts used those ratings to decide funding. The proposed rules would give political appointees final say and instruct them not to routinely defer to peer reviewers. The administration lost court cases because executive orders cannot circumvent legal requirements and can be vacated without strong justification. The Office of Management and Budget (OMB) responded by merging the executive order with other administration priorities and initiating formal rulemaking. The new rules would allow any federal agency to cancel any grant at any time based on a vague assertion that it is not in the national interest. They would also ban grants on culture war topics, limit international collaborations, and block spending on publishing papers and conferences. The OMB is starting a process of public feedback and a final rule in the Federal Register.

What’s reported

An executive order issued last August aimed to change US grant funding procedures.
Previously, peer reviews and agency experts determined grant funding; proposed rules give political appointees final say.
Political appointees are instructed not to routinely defer to peer reviewers.
The administration lost court cases because executive orders cannot circumvent legal requirements.
OMB merged the executive order with other priorities and is using formal rulemaking.
The new rules allow any federal agency to cancel any grant at any time based on a vague “national interest” assertion.
The rules would ban grants on culture war topics, limit international collaborations, and block spending on publishing papers and conferences.
Previously, grant rules were handled agency-by-agency; OMB issued overall guidance but agencies had different procedures.
The new document turns guidance into rules, starting the process with public feedback and a final rule in the Federal Register.

Sources: Ars Technica

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