PEER Center Comments: OMB Guidance for Federal Financial Assistance

The Office of Management and Budget (OMB) proposed regulations in May 2026 related to federal grantmaking. In this comment, we focus on two areas of the proposed rules that have the potential to damage the federal research infrastructure and urge OMB not to move forward with either provision.

First, the proposed rules would make peer review an “advisory,” non-binding factor in grantmaking. Instead, political appointees could insert their interests into the process. Doing so would comprise the objectivity of grantmaking and research, lower the quality of federal investments in education, and prioritize politics over science and technical expertise.

Second the proposed regulations would broaden agencies’ authority to cancel grants mid-award, with little due process. Doing so could interrupt important research part-way through a multi-year grant, and limit the availability and dissemination of evidence on what works.