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ARTICLE · 11 AUGUST 2025

Improving Oversight Of Federal Grantmaking

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Directs federal agencies to overhaul their grant processes by requiring senior appointees to rigorously review discretionary grants and funding announcements for alignment with national interests and agency priorities.

United StatesGovernment, Public Sector
Akin Gump Strauss Hauer & Feld LLP
Akin Gump Strauss Hauer & Feld LLP
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Directs federal agencies to overhaul their grant processes by requiring senior appointees to rigorously review discretionary grants and funding announcements for alignment with national interests and agency priorities. It mandates enhanced accountability, prohibits funding for certain controversial initiatives, and authorizes termination of grants that no longer serve agency goals or the public interest.

Within 30 days, agency heads must review the agency's standard grant terms and conditions and submit a report to the OMB detailing whether their discretionary grant terms allow termination for convenience, including when awards no longer support program goals or national interests, and provide data on how many active awards include such provisions. Agency heads should then take steps to revise terms and conditions of existing discretionary grants.

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