Sen. Collins Asks OMB to Withdraw Parts of Grant Rule, Extend Comment Period

I write to request that you extend the comment period for the Office of Management and Budget’s (OMB) proposed rule, Regulation for Federal Financial Assistance, and that you meaningfully address stakeholder feedback on the rule and the impacts it is likely to have on small and rural communities and scientific and biomedical research. The proposed rule would make extensive changes to the Guidance for Federal Financial Assistance (‘Uniform Guidance’), the government-wide framework for administering grants, cooperative agreements, and other forms of assistance. OMB states that the intent of these changes is to “improve transparency, accountability, and oversight” for these awards. While I agree these principles should guide the administration and oversight of Federal funds, the rule would impose new, burdensome requirements on award recipients that would harm small and rural communities, undermine scientific and biomedical research, and conflict with Congress’ control over the federal funding process. The proposed rule would allow Federal agencies to terminate any discretionary grant, cooperative agreement, or other federal assistance at any time, if an agency ‘determines that a termination is in the interest of the Federal agency…, including if a Federal award does not effectuate program goals, Federal agency priorities, or the national interest.’ Prior iterations of the Uniform Guidance included provisions allowing for termination of awards that are not consistent with ‘program goals or agency priorities’ but afforded agencies discretion to consider whether to include this term in their financial assistance agreements. The proposed rule would take away this discretion. In addition, if awards are terminated under this new provision, the termination would not be subject to the administrative hearing requirements for compliance-based terminations, thereby limiting an entity’s ability to appeal the decision.