Improving Oversight of Federal Grantmaking

Purpose and Background:

• The Executive Order aims to improve the process of federal grantmaking and end wasteful spending of tax dollars.
• The order cites examples of past grants funding controversial or ideologically driven projects, such as drag shows in Ecuador, critical race theory training, and transgender education programs.
• It also references grants supporting gain-of-function research in Wuhan, China, and AI-powered social media censorship tools.

Problems Identified:

• Many federally funded research projects lack reproducibility and have faced issues like data falsification, even at top universities.
• A significant portion of grant money often goes to administrative costs rather than research.
• The grant review process is complex, favoring applicants with resources for legal and technical expertise, and lacks sufficient interagency coordination, leading to duplication and unfocused research.

Key Reforms Ordered:

• Agencies must designate senior appointees to review new funding opportunities and discretionary grants for alignment with national priorities.
• Grant announcements must be written in plain language and minimize unnecessary requirements.
• Preference should be given to institutions with lower indirect cost rates and a commitment to rigorous, reproducible science (“Gold Standard Science”).
• Grants should not fund racial preferences, denial of the sex binary, illegal immigration, or anti-American values.
• Peer review remains advisory, not binding.

Accountability and Oversight:

• Agencies must annually review discretionary awards for consistency with priorities and progress.
• The Office of Management and Budget (OMB) is directed to revise guidance to streamline applications and allow for termination of grants that no longer serve agency priorities or the national interest.
• Agencies are to revise grant terms to allow for immediate termination for convenience and to limit administrative costs

Implementation:

• Agencies must report on their grant terms and conditions, and take steps to revise existing and future grants to comply with the new requirements.
• The order clarifies that it does not create enforceable rights for any party and is to be implemented consistent with existing law.