Enhancing Scrutiny of Federal Grant Allocation Processes
In an effort to improve the federal grantmaking process, end wasteful spending, and strengthen oversight, President Trump issued an executive order titled "Improving Oversight of Federal Grantmaking" on August 7, 2025.
The order aims to overhaul how federal discretionary grants are awarded and managed by mandating agency heads to appoint senior officials to oversee and approve all new funding opportunity announcements and discretionary grants. This is to ensure that funding aligns with agency priorities and national interests.
The executive order also requires reviews and reporting on grant terms to ensure termination provisions exist when awards no longer support administration goals. It prohibits drawdowns of general grant funds without explicit agency authorization and written justification.
To streamline the application process and require termination for convenience clauses in discretionary grants, the Office of Management and Budget (OMB) is directed to revise grant guidance. The order prioritises political appointee and subject matter expert review to ensure grants benefit the American public and avoid funding of programs considered wasteful or misaligned with priorities.
For more detailed explanations and practical implications, individuals can consult legal advisories and law firm publications, policy analyses from government advisory sources, and news articles and commentary. These sources provide comprehensive insight into the EO’s content, agency responsibilities, and its impact on grantees across federal funding programs.
Other key aspects of the order include the intention to clarify that all discretionary grants should permit termination for convenience, prioritising an institution's commitment to rigorous, reproducible scholarship over its historical reputation or perceived prestige, and emphasising the importance of achieving Gold Standard Science in discretionary awards pertaining to scientific research.
The order also addresses concerns about the grant review process undermining the interests of American taxpayers by favoring grant applicants who can afford legal and technical experts. It aims to address this by limiting the use of discretionary grant funds for facilities and administrative costs.
Notably, the order does not discourage or prevent the use of peer review methods to evaluate proposals for discretionary awards. It also does not create any rights to any particular level of review or consideration for any funding applicant.
In addition, the order addresses controversies surrounding the use of federal grants. For instance, it has been reported that the NSF gave millions to develop AI-powered social media censorship tools, and federal grants have funded projects such as drag shows in Ecuador, critical race theory training, and transgender-sexual education programs.
The order also addresses concerns about the reproducibility of federally funded scientific research results, with a significant proportion of these results unable to be reproduced by external researchers.
Finally, the order addresses the issue of unsafe labs in Wuhan, China, likely the source of COVID-19, which received funding from the National Institutes of Health for gain-of-function research. The order also addresses the use of taxpayer-funded grants for non-governmental organizations that provided services to illegal immigrants, worsening the border crisis.
In conclusion, the executive order aims to bring transparency, efficiency, and accountability to the federal grantmaking process, ensuring that American taxpayers' money is used effectively and responsibly.
- The executive order, titled "Improving Oversight of Federal Grantmaking," issued by President Trump in 2025, aims to enhance the science sector by prioritizing rigorous, reproducible scholarship over historical reputation or perceived prestige in discretionary awards for scientific research.
- The order also targets the education sector, addressing controversies surrounding the use of federal grants for programs such as drag shows, critical race theory training, and transgender-sexual education.
- In an effort to improve the financing aspect of grantmaking, the order limits the use of discretionary grant funds for facilities and administrative costs, intending to prevent the grant review process from favoring grant applicants who can afford legal and technical experts.
- The order's impact extends to diverse sectors, including business, politics, health, and general-news, as it addresses concerns about the reproducibility of federally funded scientific research results and the use of taxpayer-funded grants for non-governmental organizations that provide services to illegal immigrants, contributing to the border crisis.
