Education Department Latest Agency to Propose Changes to Grant Rules

The U.S. Department of Education has proposed significant changes to its grant regulations that could affect colleges and universities, state education agencies, school districts, and other federal grantees. The proposed rule, published August 24, 2026, is open for public comment through September 23, 2026.

The proposal incorporates several concepts from the White House Office of Management and Budget’s (OMB) proposed revisions to the Uniform Guidance (see COSSA’s coverage). Those broader changes have been delayed amid congressional action (see related story), but the Education Department’s proposal signals that federal agencies appear to be moving forward with similar reforms absent a finalized OMB rule. The National Science Foundation (NSF) and Department of Energy have also proposed changes to their grant policies involving areas such as research security, foreign conflicts of interest, public access, political oversight, and award terminations.

Key proposed changes include greater authority for the Department to terminate grants that are inconsistent with program goals or agency priorities, competitive preferences for applicants proposing to charge lower indirect costs, and new requirements emphasizing merit and high standards in hiring, admissions, promotions, and compensation practices supported by federal grants. The Department is also proposing changes intended to streamline discretionary award selection and clarify procedures for continuation awards.

Organizations and individuals that receive Education Department funding should consider commenting on the rule by September 23.