Less Certainty for Federal Funding

August 3, 2026

The US Office of Management and Budget (OMB) published a rule for public comment in May 2026. The rule aims to change the “Uniform Guidance” or 2 C.F.R. Part 200. This section of regulatory law governs how federal agencies administer funding and grant programs. Experts have outlined that the rule will result in less certainty for federal grant awardees and provide administrations with more authority to cancel grant and funding agreements based on current national priorities.

Public comments submitted on the rule have expressed concerns over additional administrative burden and compliance tracking, abrupt termination of grant funding after organizations have invested time and resources in delivering on the grant objectives and, the need to increase oversight and monitoring of subawardees.

The Hill reported that Senator Susan Collins (R-Maine) has called on the Trump administration to withdraw portions of the
rule on July 7, 2026. The Senator highlighted that the rule may “potentially harm small and rural communities and add uncertainty to scientific and biomedical research.” Senators Heinrich and Luján signed on to a letter sent to OMB Director Russel Vought on July 1, 2026 expressing concern over the rule and asking the rule to be withdrawn completely.

Public Comments on the rule were due on July 13, 2026 and the rule has garnered almost half a million individual public comments.