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Executive order · Thursday 7 August 2025

Improving Oversight Of Federal Grantmaking

Trump tightens political and performance oversight of Federal discretionary grants.

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Senior political appointees will gain greater control over grant opportunities, awards, annual reviews, and terminations. Agencies must prioritize administration policies, measurable results, reproducible research, lower overhead, and the national interest.

What the order does

  • Requires senior appointees to approve new funding opportunities and review discretionary awards before issuance and annually thereafter.
  • Directs agencies to simplify applications, use plain language, consult subject-matter experts, coordinate across agencies, and reduce duplicate funding opportunities.
  • Bars discretionary funding for racial preferences, denial of the human sex binary, illegal immigration, public-safety threats, or initiatives deemed anti-American.
  • Favors recipients with lower indirect costs, broadens the recipient pool, and requires benchmarks and commitments to administration standards for scientific research.
  • Keeps peer review advisory while requiring senior appointees to exercise independent judgment.
  • Directs the Office of Management and Budget to limit facilities and administrative costs and require termination rights when grants no longer advance agency priorities or the national interest.
  • Requires agencies to review grant terms within 30 days, add termination provisions where legally permitted, and strengthen controls over recipients’ fund withdrawals.

Who it affects

  • Federal agencies that award, offer, or manage grants.
  • Universities, researchers, nonprofit organizations, foreign-assistance recipients, and other applicants for discretionary grants.
  • Federal officials and experts who evaluate, approve, monitor, or terminate awards.