A proposed federal rule would significantly affect funding for nonprofits, schools, public agencies, local governments, and community partners that rely on federal or pass-through grants.

Public comments are due July 13, 2026. The proposed rule requires review and approval of grant awards by senior agency appointees, gives broad authority for federal agency leaders to terminate active awards, restricts the use of federal funds for DEI and gender-related work, further restricts issue advocacy, imposes new E-Verify requirements, and imposes other new eligibility standards and organizational risk-review criteria. Organizations that receive, administer, or rely on federal or pass-through funding may want to review the proposal and consider submitting a comment describing how it could affect their work and the communities they serve. Proposed rule: https://www.regulations.gov/document/OMB-2026-0034-0001. Comments may be submitted through https://www.regulations.gov/document/OMB-2026-0034-0001 under docket OMB-2026-0034.