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OMB proposes grant rule overhaul, scrapping DEI, fixed awards

6/2/2026

Center

OMB Cuts DEI

The draft eliminates diversity, equity and inclusion criteria and bars agencies from using identity-based concepts in grant awards.
The Office of Management and Budget released a proposed rewrite of 2 CFR 200, inviting comments through July 13.
It aligns termination rules with contracts, letting agencies cancel awards when in their best interest.
Fixed-amount awards and subawards are eliminated to boost transparency and allow routine cost monitoring.

Left

Trump Grants Block

The draft rules would block federal grants for projects denying biological sex or advancing diversity, equity and inclusion initiatives.
U.S. President Donald Trump’s administration released draft regulations requiring senior political appointees to pre-issue review all discretionary federal grants.
Scientists and advocacy groups warned the rule would replace peer review with political loyalty tests.
The proposal lets agencies terminate funding at discretion and restricts international collaborations without explicit approval.

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OMB Cuts DEI

The draft eliminates diversity, equity and inclusion criteria and bars agencies from using identity-based concepts in grant awards.
The Office of Management and Budget released a proposed rewrite of 2 CFR 200, inviting comments through July 13.
It aligns termination rules with contracts, letting agencies cancel awards when in their best interest.
Fixed-amount awards and subawards are eliminated to boost transparency and allow routine cost monitoring.

1 / 2