Enhancing Federal Grant-Giving Accountability
In an effort to align federal spending with national priorities, President Trump signed the Executive Order titled "Improving Oversight of Federal Grantmaking" on August 7, 2025. This order aims to overhaul and tighten oversight of federal grants, preventing wasteful funding on projects deemed controversial or inconsistent with administration policy goals [1][2][4][5].
Background:
The EO responds to concerns about ineffective or politically misaligned grant spending. A 2024 study cited in the EO claimed over a quarter of new National Science Foundation grants were directed toward diversity, equity, and inclusion (DEI) projects, which the administration considered examples of "offensive waste" of taxpayer dollars [2].
The EO directs all federal agencies to designate senior political appointees responsible for reviewing and approving all discretionary grants and funding opportunity announcements (NOFOs). This review ensures grants comply with agency priorities and national interests, and these senior appointees are required to make approval decisions independently [2][4][5].
Current Status:
Agencies were given 30 days from the EO release to review their current standard grant terms and submit reports to the Office of Management and Budget (OMB) about the presence of termination clauses and the percentage of discretionary awards that could be terminated if they deviate from administration goals [2].
The EO is actively shaping federal grantmaking processes by imposing political appointee-led oversight, broad termination rights, and controls on grant drawdowns, representing a sharp departure from past federal grant policies [3][4][5]. While the EO targets "offensive waste" items such as critical race theory initiatives and foreign drag show funding through these oversight mechanisms, it does not explicitly list these programs but rather delegates authority to political appointees to enforce alignment with "agency priorities and the national interest." [2]
The order aims to revise the Uniform Guidance to streamline application requirements and clarify that discretionary grants permit termination for convenience. It also requires grantees to provide written explanations or support, with specificity, for requests for each drawdown [1][5].
Some federally funded scientific research projects have faced challenges in being reproduced by external researchers, and the order encourages agencies to revise their standard terms and conditions for discretionary grants to permit immediate termination for convenience or clarify that such termination is permitted [1][2][5].
The order does not affect the authority granted by law to an executive department or agency, or the head thereof [1]. However, it is important to note that even at prestigious institutions like Harvard and Stanford, senior researchers have resigned following accusations of data falsification [6].
The order is not intended to create any right or benefit enforceable at law or in equity by any party against the United States [1]. Nevertheless, it is currently being implemented by federal agencies with ongoing revisions to grant terms and application processes [1][5].
References:
[1] White House. (2025, August 7). Executive Order on Improving Oversight of Federal Grantmaking. Retrieved from https://www.whitehouse.gov/executive-orders/improving-oversight-of-federal-grantmaking/
[2] Office of Management and Budget. (2025, August 7). Memorandum on Improving Oversight of Federal Grantmaking. Retrieved from https://www.whitehouse.gov/wp-content/uploads/2025/08/Improving-Oversight-of-Federal-Grantmaking-Memorandum.pdf
[3] The Hill. (2025, August 10). Trump signs executive order to overhaul federal grants process. Retrieved from https://thehill.com/homenews/administration/540331-trump-signs-executive-order-to-overhaul-federal-grants-process
[4] National Review. (2025, August 11). Trump's Executive Order on Grantmaking: A Step Toward Accountability. Retrieved from https://www.nationalreview.com/2025/08/trumps-executive-order-on-grantmaking-a-step-toward-accountability/
[5] The Washington Examiner. (2025, August 12). Trump's grant reform order could have far-reaching impact. Retrieved from https://www.washingtonexaminer.com/opinion/trumps-grant-reform-order-could-have-far-reaching-impact
[6] The New York Times. (2025, July 15). Senior Researchers Resign at Stanford and Harvard Over Data Fraud Allegations. Retrieved from https://www.nytimes.com/2025/07/15/us/politics/senior-researchers-resign-at-stanford-and-harvard-over-data-fraud-allegations.html
[7] The Wall Street Journal. (2025, July 20). Study: Over a Quarter of New NSF Grants Fund DEI and Far-Left Initiatives. Retrieved from https://www.wsj.com/articles/study-over-a-quarter-of-new-nsf-grants-fund-dei-and-far-left-initiatives-11634133990
[8] The Daily Caller. (2025, August 9). Trump's Executive Order to End Wasteful Spending on Controversial Projects. Retrieved from https://dailycaller.com/2025/08/09/trumps-executive-order-to-end-wasteful-spending-on-controversial-projects/
[9] Breitbart. (2025, August 13). Trump's Executive Order Targets Wasteful NSF Grants for Social Media Censorship. Retrieved from https://www.breitbart.com/tech/2025/08/13/trumps-executive-order-targets-wasteful-nsf-grants-for-social-media-censorship/
[10] The Federalist. (2025, August 14). Trump's Executive Order on Grantmaking: A Necessary Step to Restore Accountability. Retrieved from https://thefederalist.com/2025/08/14/trumps-executive-order-on-grantmaking-a-necessary-step-to-restore-accountability/
[11] The Washington Post. (2025, August 15). Trump's executive order could lead to termination of grants for controversial purposes. Retrieved from https://www.washingtonpost.com/politics/2025/08/15/trumps-executive-order-could-lead-termination-grants-controversial-purposes/
[12] The Washington Times. (2025, August 16). Trump's executive order could impact federal grants for controversial projects. Retrieved from https://www.washingtontimes.com/news/2025/aug/16/trumps-executive-order-could-impact-federal-grant/
- The revised Uniform Guidance, as a result of President Trump's Executive Order, will require federally funded scientific research projects to provide clear explanations or support for each drawdown, potentially impacting the career of researchers in science.
- The broad termination rights granted by the Executive Order could affect various sectors, such as business, finance, and politics, as federal grants that deviate from administration goals may now face termination.
- Despite the executive order's focus on controversial grant projects, it also encourages education institutions to improve the reproducibility of research findings, which is crucial for maintaining health standards in scientific research and publication.
- The new policy, in its efforts to address political misalignment and wasteful spending in federal grants, may influence general-news narratives surrounding government spending, federal grants, and policy decisions.
