FAQs: Proposed OMB Rulemaking and Potential Impacts

On May 29, 2026, the Office of Management and Budget issued a proposed rule that would substantially revise the government-wide regulations governing federal grants, cooperative agreements, and other forms of federal financial assistance. Because these regulations establish baseline requirements for federal awards across the government, the proposal may have implications for universities and other recipients of federal funding.

The proposal is broad and is not limited to research funding. At universities, federal financial assistance can also support education and workforce-development programs, public health and community initiatives, agricultural activities, equipment and infrastructure projects, and other public service activities. The proposed changes could, therefore, affect how a wide range of federally supported programs are selected, funded, administered, monitored, and potentially terminated.

The proposal is not final and is currently open for public comment until July 13, 2026. 

The University is currently analyzing the proposal. Areas under review include potential changes affecting:

• How federal agencies review and select proposals, including the roles of peer review and senior agency officials;
• The administration, modification, monitoring, and termination of federal awards;
• The allowability of, or requirements for prior approval of, costs associated with scientific publishing, conferences, professional memberships, and related scholarly activities;
• International research collaborations and partnerships; and
• Other compliance, reporting, and administrative requirements affecting recipients of federal funding.

For additional context, APLU has prepared a summary of major issues in the proposed rule: Key Issues within OMB Uniform Guidance Revision Proposal.

The final impact will depend on whether, how, and when the proposed provisions are adjusted and incorporated into a final rule and subsequently applied by federal agencies.
 

No - It is only a proposal at this time.

Researchers and administrators should continue to follow the terms and conditions of their current awards, existing sponsor requirements, and University policies and procedures. Do not change project activities, budgets, collaborations, or planned expenditures at this time. The University will provide additional guidance if a final rule is issued or if federal agencies communicate changes affecting current or future awards.

The University has convened a cross-functional working group that includes faculty, subject-matter experts, research administrators, and representatives from relevant University offices, to analyze the proposal, assess its potential implications, monitor responses from national higher education and research associations, and help inform the University’s next steps.

We are also working with national higher education and research organizations, including COGR, AAU, APLU, and others, to share information, understand how the proposal could affect universities and the broader research enterprise, and coordinate responses where appropriate.

The University plans to submit an institutional comment letter to OMB before the federal comment period closes on July 13, 2026. Faculty, researchers, research administrators, and others are encouraged to provide input to the University working group through this Google form by Wednesday, July 1. Specific examples will be especially useful, including how particular provisions could affect:

• Current or planned research programs;
• Grant application or administration processes;
• Domestic or international collaborations;
• Publishing, conference participation, or professional activities; or
• The broader scientific and research enterprise.

Input submitted through the form will be reviewed as the University develops its institutional response.

Yes. Members of the University community may submit comments in their personal capacity through the federal regulatory comment portal.

Anyone submitting an individual comment should make clear that the views expressed are their own and that they are not submitting the comment on behalf of the University of Minnesota. Comments submitted to the federal docket will become part of the public record, so submissions should not include confidential, proprietary, private, or otherwise protected information.

For additional context, APLU has prepared a summary of major issues in the proposed rule: Key Issues within OMB Uniform Guidance Revision Proposal.

Individual comments are due on or before July 13, 2026. Commenters should follow the instructions provided in the federal notice, including identifying the relevant section of the proposed regulation when possible.