How federal grantmaking may change

“The Office of Management and Budget (OMB) last week published a 444-page Notice of Proposed Rulemaking (NPRM) addressing the “uniform guidance” that covers grant administration across the federal government. These blanket policies will potentially affect all federal grant programs for which community colleges apply. The NPRM has two primary aspects: one concerns the processes the government itself uses to make funds available to awardees, and the second concerns conditions applying directly to grantees. Generally, this proposed regulation aims to centralize and systematize federal grantmaking. To a large extent, OMB has always had this role. The voluminous regulation cannot be captured in this summary, but here are some of the main features most relevant to community colleges . Regulatory background The rule comes in the wake of a series of unconventional and disruptive actions taken by the Trump administration in managing grants, beginning in its first days. A major aspect of the proposed changes is to vest greater authority over grant-making decisions to political appointees. That said, the grantmaking process itself has never been apolitical, irrespective of who controls the executive branch. Executive branch agencies have always been given (or taken) some degree of flexibility to structure grant competitions to align with their priorities. Because of this, and because of the numerous steps that are taken between congressional funding and a campus receiving an award, the full implications of this proposed rule remain unclear, stipulating the clear interest of the current administration to centralize and simplify grants administration and to advance its own priorities through the establishment of political screens on grant awards. Some of the proposals will unquestionably make it more complicated and uncertain for federal grantees. This includes the possibility of unanticipated grant terminations. Key provisions The media has focused on the proposal’s “anti-DEI” and related provisions, and some of its aspects fall into that category. However, as with other policies that the president has advanced, the bottom line is that institutions have always needed to comply with Title VI of the Civil Rights Act and related statutes, and the Constitution, and they continue to do so. Also of note is the fact that in this regulation the administration is explicitly not establishing new policies on indirect cost reimbursement. Given Trump’s previous efforts to cap indirect cost reimbursement at 15%, this is a political and substantive victory. Community colleges aren’t front and center in the indirect cost debates, but they are definitely affected by federal policy in this area. Next steps Comments on the NPRM are due July 13. The American Association of Community Colleges (AACC) will submit comments, perhaps in concert with other higher education groups — the regulation itself affects a huge array of entities, public and private. AACC will help its members submit comments on their institution’s behalf. OMB plans to finalize the rule before the end of this fiscal year and implement it on October 1. The post How federal grantmaking may change first appeared on Community College Daily .

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