A proposed rule from the White House Office of Management and Budget that would impose significant changes on federal funding recipients has been blocked until at least Dec. 11 under a continuing resolution signed into law this week.
The proposed revisions to the Guidance for Federal Financial Assistance, commonly referred to as “Uniform Guidance,” include measures that would require senior political appointees to conduct pre-issuance reviews of all discretionary awards, broaden agency discretion to terminate awards and eliminate the use of fixed amount awards and subawards.
The legislation passed this week also extends a Sept. 30 deadline for Congress to approve fiscal year 2027 funding.
The proposed revisions to Uniform Guidance have raised concerns among universities and higher education organizations, which argue that the new rules would politicize the grant approval process.
In a letter submitted in July to OMB, U-M argued that the revisions “will hinder key elements of American innovation and will fail to achieve OMB’s stated objectives of transparency, accountability, and efficiency.”
Additionally, the university called on the agency to withdraw the proposal and “meaningfully engage stakeholders in the research community in the rulemaking process due to the damaging impacts the current proposal would have on our nation’s research capabilities and the corresponding economic impact.”
U-M continues to communicate the potential impact of the proposed changes to members of Michigan’s congressional delegation, relevant congressional committees and staff and the presidential administration. U-M is also working with peer institutions, associations and other groups impacted by the proposal to push for a more stable, predictable and merit-based regulatory framework for federal awards going forward.