OMB Proposes Major Changes to Federal Grant Management Rules

The Office of Management and Budget’s (OMB) proposed revisions to the Uniform Guidance (2 CFR Part 200)—the government-wide rules governing federal grants and cooperative agreements—represent more than a technical update to grants management. The proposal seeks to strengthen federal oversight, accountability, and compliance requirements across all federal assistance programs, including National Institutes of Health (NIH), Health Resources and Services Administration (HRSA), Centers for Disease Control and Prevention (CDC), and Early Hearing Detection and Intervention (EHDI) grants.

Three major themes emerge from the proposal:

1. Increased Oversight and Enforcement

OMB is proposing stronger tools for federal agencies to monitor grant recipients, prevent waste and abuse, and ensure compliance with federal laws and Administration priorities. This could result in increased reporting requirements, more frequent compliance reviews, and greater authority for agencies to suspend or terminate awards for noncompliance.

2. Civil Rights and DEI Compliance

The proposal emphasizes equality, equal opportunity, and prohibitions on unlawful discrimination. This aligns with broader Administration efforts to review federally funded programs for compliance with civil rights laws and could lead to increased scrutiny of certain DEI-related activities, scholarship programs, hiring initiatives, and training programs.

3. Stronger Legal Framework for Enforcement

OMB also proposes clarifying the legal status of Uniform Guidance requirements and agency authority to enforce them. This could provide agencies with a stronger basis for imposing grant conditions and taking enforcement actions when recipients fail to comply.

Potential Impact on Hearing Health Programs

The proposal does not directly affect funding levels for programs such as EHDI, NIH research grants, or HRSA workforce initiatives. However, recipients could face:

• Additional reporting and documentation requirements.
• Enhanced compliance monitoring.
• New certifications and assurances.
• Greater oversight of subrecipients and partners.

State EHDI programs, universities, and other federally funded entities may need to devote more resources to compliance and grant administration.

Conference Attendance Considerations

While the proposal does not prohibit using federal grant funds to attend national conferences, it could lead to greater scrutiny of travel and conference-related expenses. Federal agencies may require stronger justification demonstrating that conference attendance directly supports grant objectives, training, technical assistance, or program implementation. Future agency guidance could also place additional restrictions on travel, conference spending, and training expenditures.

If finalized, these changes could represent one of the most significant updates to federal grants management since its inception in 2013. The Uniform Guidance has served since 2013 as the consolidated set of administrative requirements, cost principles, and audit requirements applicable to grants, cooperative agreements, and other forms of federal financial assistance. OMB revised the Uniform Guidance in August 2020 and in April 2024.

The Academy will continue to monitor these developments. An open comment period ends on July 13, 2026, for anyone to share views on the revised guidance with OMB.