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Trump OMB Rule Shifts $1 T Grants to Appointees, Sparks Lawsuits

7/20/2026

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Story summary
  • OMB under President Donald Trump unveiled a rule shifting $1 trillion of grant-making authority to political appointees by October.
  • Half a million comments, about 95% opposing, have flooded the proposal, prompting the cancellation of a $1 million NIH grant.
  • More than 22 state attorneys general, including California’s Rob Bonta, plan to sue.
  • Professor Lawrence Gostin warned courts may block the rule while appeals courts and the Supreme Court could keep it alive.