OMB and Federal Agencies Issue Proposed Rule on Federal Financial Assistance

The Office of Management and Budget (OMB) and over 40 federal agencies jointly issued a proposed rule, “Regulation for Federal Financial Assistance”, on May 29 that would incorporate policies from several Trump Administration Executive Orders (EOs) and require a senior political appointee conduct a pre-review of each Notice of Funding Opportunity (NOFO) to ensure it is consistent with the law, agency priorities, and the national interest. The proposed rule also states that agencies must ensure that federal awards, to the maximum extent permitted by law, must not be used to fund, promote, encourage, subsidize, or facilitate unlawful DEI or DEIA policies, principles, or practices. The proposed rule has a 45-day public comment period, with comments due no later than July 13. OMB proposes to issue a final rule that is effective by October 1 of this year. The proposed rule is available here. A summary from the American Council on Education (ACE) is here. Coverage from Inside Higher Ed may be accessed here.