Vought’s Grant Overhaul Draws Nearly 497,000 Comments and Litigation Threats as OMB Aims to Finalize It by Oct. 1

The Office of Management and Budget’s proposed rule replacing its “uniform guidance” for federal grants drew 496,769 public comments before the 45-day window closed July 13, 2026, Roll Call reported on July 20. The rule would require approval by senior political appointees before competitive grants are awarded, deemphasize peer review, require that discretionary awards “advance the president’s policy priorities,” make it easier to cancel funding mid-project, and bar spending on causes the administration labels “woke.” It reaches dozens of grantmaking agencies and, by Roll Call’s account, potentially $1 trillion or more a year — roughly $200 billion in competitive grants plus a provision letting agencies alter terms of the $900 billion in annual formula and block grants after work begins. An AI-assisted review of 51,000 posted comments by Tech Policy Press found 94 percent opposed.

Control over grant conditions is one of the principal levers by which appropriated money reaches states, universities and nonprofits, and shifting the final call from civil servants and peer panels to political appointees changes who decides. Arnold & Porter wrote last month that it is “not obvious” OMB has statutory authority to impose binding regulations rather than guidance over federal grantmaking. Senate Appropriations Chair Susan Collins, a Republican, asked Vought to extend the comment period, warning the rule would burden small and rural communities and “conflict with Congress’ control over the federal funding process.” Vought declined to extend it.

OMB is reviewing comments and aims to publish a final rule by Oct. 1, 2026, ahead of the fiscal 2027 grant season. Advocacy group Stand Up for Science says it is preparing litigation. No rule has been finalized and no court has ruled.