The Trump administration this month published a far-reaching executive order outlining new policies and procedures for awarding federal grants.
The August 7 order requires all federal agencies to designate senior political officials as responsible for reviewing all discretionary grant opportunities. The duties of those appointees will include:
- Vetting proposed grant announcements prior to publication
- Ensuring that the program aligns with administration priorities
- Formally coordinating with the Office of Management and Budget
The oversight will apply to new awards as well as grant renewals. The order will still permit peer reviews but they will no longer be dispositive in all cases. The mandatory engagement of political personnel in the grantmaking process could change it dramatically, though each administration has generally found ways to emphasize its priorities in allocating funds.
The new centralizing order adds new layers and processes in reviewing grants for specific goals before the administration approves a new grant or continuation of a grant. It further requires each agency to create a process to review all grantmaking to be “consistent with agency priorities and the national interest.” Many of these priorities won’t likely be reflected in the legislation that authorized the funding.
Under the order, executive branch agencies must incorporate “termination-for-convenience” clauses in their grant agreements and restrict grantees’ access to funds unless they are specifically approved. As a result, agencies may gain much greater discretion to cancel grants before their completion. Administrative burdens will also likely grow, including more stringent approval processes for fund disbursements and project renewals.
The process change may explain why many community colleges are still waiting to receive continuation grants for the current fiscal year, while in several cases notifications still haven’t been sent out for new FY 2025 competitions. The urgency of this situation grows as the fiscal year’s end on September 30 draws near.
AACC encourages its members to inform the association of any unusual delays or complications with the grantmaking process.
