On May 29, 2026, the Office of Management and Budget issued a Notice of Proposed Rulemaking (NPRM), OMB-2026-0034, Regulation for Federal Financial Assistance. The scope of this proposed regulation is breathtaking: it would create new terms and conditions for every grant issued across every department and agency of the federal government, including all agencies of the Department of Health and Human Services. The NPRM proposes to politicize the awarding and continuation of grants, while also regulating the non-grant activities of those who receive federal funds.

Above all, this NPRM would politicize the federal grantmaking process. Every grant would now need to be approved by a political appointee – undermining the peer review and objective review protocols followed by most federal grant making programs. It would permit the political appointee to deny a potential grantee funding if the grantee is affiliated with other organizations with policy positions different from those of the administration. This applies to every potential grantee, from state and local governments and schools systems to academic researchers and community-based organizations.

The NPRM would create financial instability and uncertainty for grantees, since the new regulation would permit the termination of any grant, essentially at the convenience of the government, at any point during a grant period if the political appointee determines the grant is no longer an administration priority.

The NPRM would codify in regulation many of the current Administration’s executive orders restricting the use of federal funds for DEI policies or practices, so-called “gender-ideology” or gender affirming care for individuals under 19.

Finally, the NPRM would undermine Congressional authority in two important ways. Many grant programs have been created and authorized by Congress with explicit criteria for how grants should be awarded. These authorizations assume an objective review process and do not include the expectation that political criteria could be added to the grant making process. In addition, during the annual appropriations process, Congress further establishes its expectations regarding the awarding of many grant programs. The NPRM would undermine the congressional power of the purse.

Defend Public Health is challenging this OMB NPRM in various ways. We are undertaking a campaign to assure as many people as possible submit comments to OMB during the comment period that runs through July 13th. It is also important for Congress to weigh in during the comment period to signal that they will, if necessary, assert their legislative priorities by taking on this rule should it be enacted.