OMB Proposes Sweeping Overhaul of Federal Assistance Regulations
WHAT: The Office of Management and Budget (OMB) issued a proposed rule that would revise the government-wide regulations for the management of federal grants, cooperative agreements, and other forms of federal financial assistance under 2 CFR, subtitle A. According to OMB, the proposed revisions are intended to improve transparency, accountability, and oversight for awards across the federal government, while also reducing the burden on recipients. Notable key provisions include: Rebranding the existing “Uniform Guidance” at 2 CFR Part 200 as the “Uniform Grants Regulation” (UGR) and clarifying that the regulatory text of 2 CFR, subtitle A is “an OMB regulation” that carries “regulatory effect in [its] own right”; Elimination of fixed-amount awards and fixed-amount subawards, which OMB found “can limit transparency and hinder effective oversight”; New prohibitions on using federal awards to “fund, promote, encourage, subsidize, or facilitate” DEI policies; A new prohibition on “disc...