New Executive Order Impacting Federal Grant Making

What’s Changing

Why It Matters

Mandatory Senior-Level Review: 
Agencies must appoint a senior political
appointee to review all new grant solicitations
and discretionary awards, ensuring alignment
with agency priorities and national interests
beyond peer review.

Could slow FOA releases and add new review
layers before opportunities are posted.

Plain-Language Solicitations & Coordination: 
Grant announcements must be simplified to
reduce reliance on costly legal/technical help.
Agencies must coordinate to avoid duplicative      calls.

Proposals may become easier to navigate, but
fewer opportunities could be released due to
consolidation.

New Funding Criteria & Restrictions: 
Awards must align with presidential policy
priorities and avoid funding activities deemed
inconsistent with “American values.” Preference
for lower indirect cost rates and “Gold Standard
Science.”

Award competitiveness may shift toward lower
F&A institutions and those with reproducibility
initiatives.

Uniform Guidance Revisions:
Agencies must report on “termination for
convenience” clauses within 30 days. OMB will
revise guidance to require these clauses and cap
F&A recovery.

Could increase award termination risk and
reduce recoverable indirect costs.

Tighter Oversight of Existing Awards: 
Agencies must add termination clauses to active
grants (where legal) and require detailed
justification before drawdowns.

Existing funding could face more restrictions and slower access to obligated funds.