On May 29, 2026, the Office of Management and Budget (OMB) published a proposed rule that would make significant changes to federal financial assistance regulations and the government-wide Uniform Guidance framework used to administer federal awards.
The proposal includes revisions affecting federal grants, cooperative agreements, cost principles, funding opportunities, and recipient compliance requirements. While the rule is not specific to higher education, colleges and universities that receive federal funding should review the proposal carefully, as it could affect grant administration, procurement, sponsored programs, research activities, and institutional compliance processes.
Among the proposed changes are:
- Revisions to government-wide federal financial assistance regulations
- Changes to Uniform Guidance requirements
- Updates to cost principles and allowability provisions
- New requirements related to Notices of Funding Opportunity (NOFOs)
- Enhanced oversight and accountability provisions for federal award recipients
The Department states that these changes are intended to streamline student aid administration, improve accountability, and align federal regulations with recently enacted statutory requirements.
Comments are due on or before July 13, 2026. Late comments will be considered only to the extent practicable.
Institutions interested in reviewing the proposal or submitting comments can access the Federal Register notice using the links below:
“The Office of Management and Budget (OMB) proposes to revise the Guidance for Federal Financial Assistance to improve government-wide policies and requirements related to the management of grants, cooperative agreements, and other forms of assistance. OMB is proposing revisions that would improve transparency, accountability, and oversight for Federal awards across the Federal Government. This includes ensuring that American tax dollars are not wasted or misused, activities performed under Federal awards are consistent with law and policy, and recipients are held accountable when they fail to meet relevant standards. The revisions also aim to ensure that basic American principles of equality and equal opportunity are upheld throughout all stages of the award making process and that unlawful discrimination is no longer permitted. Proposed changes also include providing further clarification on the regulatory status of the OMB requirements and on the process for future updates to the government-wide requirements. Finally, OMB also proposes changes to reduce recipient burden. The listed Federal grant-making agencies propose conforming changes to their respective adopting regulations, or, in the case of some agencies and other entities, establishing new adopting regulations or policies. The proposed changes reflect the administration’s commitment to transparency, accountability, and proper oversight for the Federal grantmaking process. The proposed regulations seek to ensure that American tax dollars are ultimately used to serve the needs of the American public.”