The White House on Aug. 7 issued an executive order entitled “Improving Oversight of Federal Grantmaking.” The order directs each agency to create a process in which a political appointee reviews both new funding opportunity announcements and grant awards “to ensure that they are consistent with agency priorities and the national interest.”
The order directs that grant awards “must, where applicable, demonstrably advance the President’s policy priorities.” It specifically prohibits the use of discretionary awards to “fund, promote, encourage, subsidize, or facilitate” what the order asserts are “anti-American values.” Agencies are directed to prohibit awardees from drawing down general grant funds for specific projects without the affirmative authorization of the agency and written explanations for each drawdown request.
The executive order also states that “all else being equal, preference for discretionary awards should be given to institutions with lower indirect cost rates” and encourages grants to be given to a broad range of recipients rather than “a select group of repeat players.” It directs revision of the Uniform Guidance to require all discretionary grants to permit “termination for convenience” and requires each agency submit a report to the director of the Office of Management and Budget detailing the agency’s standard grant terms and conditions and requiring revision if the terms and conditions do not permit termination for convenience.