OMB proposes sweeping rewrite of federal grant rules for science
10 reported
The Office of Management and Budget, joined by roughly forty grantmaking agencies including NSF, HHS, DOE, NASA, and DOD, has proposed a rewrite of the Regulation for Federal Financial Assistance governing all federal grants. The proposed rules require program goals to be “aligned with administration policies and priorities” and mandate that senior appointees conduct merit reviews, with peer review remaining advisory. Grants would become terminable at will when they no longer effectuate program goals, agency priorities, or the national interest as they exist at the time of termination. Universities must ensure subrecipients do not “significantly damage the reputation of… the Federal Government.” The rules add new paperwork, including written justifications for payment requests, screening through Treasury’s “Do Not Pay” system, E-Verify requirements, and disclosure of any employee who worked at the awarding agency within two years. A new pre-issuance review committee of senior appointees would second-guess experts, and fixed amount awards would be eliminated. The drafters state that executive agencies will continue to use discretionary authorities consistent with current Executive Branch policy, noting that if previous administrations could subsidize certain activities, there is no constitutional basis to prevent a different policy determination.
What’s reported
OMB and about forty grantmaking agencies proposed a rewrite of the Regulation for Federal Financial Assistance.
Program goals must be “aligned with administration policies and priorities” (§ 200.202).
Senior appointees must conduct merit reviews; peer review remains advisory (§ 200.205).
Grants are terminable when they “no longer effectuates program goals, Federal agency priorities, or the national interest as they exist at the time of the termination” (§ 200.340).
Universities must ensure subrecipients do not “significantly damage the reputation of… the Federal Government” (§ 200.332).
Payment requests require written justifications; disbursements screened through Treasury’s “Do Not Pay” system.
Every recipient must run E-Verify; applicants must disclose any employee who worked at the awarding agency within two years.
A new pre-issuance review committee of senior appointees will second-guess experts.
Fixed amount awards are eliminated.
The drafters state agencies will continue to use discretionary authorities consistent with current Executive Branch policy.
Key figures
OMB (Office of Management and Budget)
NSF, HHS, DOE, NASA, DOD (grantmaking agencies)
Sources: marginalrevolution.com
