Sep 29, 2025
The Trump Administration issued a sweeping Executive Order tightening oversight of federal grants.
Federal Register /Vol. 90, No. 153 /Tuesday, August 12, 2025 / Presidential Documents 38929
Executive Order 14332 of August 7, 2025
The Order directs the Office of Management and Budget (OMB) to revise the Uniform Grant Guidance (2 C.F.R. Part 200) and related policies to streamline application processes and require that all discretionary grants include a termination-for-convenience clause, among other changes. For grant recipients, this represents a major shift in both expectations and risks tied to securing and managing federal funds. These revisions affect the full grant life cycle—from application and review through compliance and potential termination—making it critical for recipients to understand and adapt to the evolving regulatory environment.
Importantly, the Order may apply not only to new grants but also to current awards. It directs agencies to revise existing grant agreements, or clarify existing terms, to allow immediate termination for convenience. Such amendments would significantly affect organizations already managing federal grants.
Download the Order: Improving Oversight of Federal Grantmaking