June 18, 2026
Overview & FAQs of OMB’s Proposed Regulations on Federal Financial Assistance
The Trump Administration, through its Office of Management and Budget (“OMB”), is proposing sweeping, government-wide changes to requirements and restrictions related to federal funding, with public comments due here by 7/13/26. This “Overview & FAQs” resource summarizes the proposed changes and answers some frequently asked questions.
If finalized, these changes would prohibit recipients and subrecipients of federal grants and other forms of federal financial assistance from using those funds to cover costs associated with a wide range of topics the Administration disfavors, including, among other things, unlawful diversity, equity, inclusion (and accessibility) efforts, “disparate impact liability,” and gender-related issues. OMB’s proposal would also significantly change the processes that all federal agencies use to make, monitor, suspend, and terminate awards. These changes would apply to many forms of federal financial assistance across sectors but will likely have stark effects on education, research, and nonprofit recipients.
Note that all of EducationCounsel’s resources related to the Administration’s executive actions are available in one place by clicking here. Please keep in mind that these developments are sometimes changing rapidly so information may become outdated, and nothing in these resources constitutes specific legal advice.
Click here to access the OMB Overview & FAQs and click here to download a PDF version.