President Donald J. Trump has issued an executive order aimed at increasing oversight and accountability in federal grantmaking. The order states that all government spending should benefit Americans or serve national interests, and expresses concern about past federal grants funding programs such as drag shows abroad, critical race theory training, and transgender education initiatives. It also points to a 2024 study claiming that over one-quarter of new National Science Foundation (NSF) grants supported diversity, equity, inclusion, or similar initiatives.
The order highlights other issues related to federally funded research, including the reproducibility of scientific results and recent cases of data falsification involving senior researchers at major universities. According to the text, a large portion of university-led research grants goes toward administrative costs rather than directly supporting scientific work.
Concerns are raised about the complexity of the grant application process and insufficient coordination among agencies, which can lead to duplication and less effective use of public funds.
To address these concerns, each agency head is directed to appoint a senior appointee responsible for reviewing new funding opportunity announcements and discretionary grants. The review process must include oversight by senior officials or their designees; continued coordination with the Office of Management and Budget (OMB); subject-matter expert input; simplified application requirements; interagency coordination to avoid redundant funding opportunities; subject matter expert review for scientific research proposals; and pre-issuance review panels involving senior appointees.
The order also requires annual reviews of discretionary awards for consistency with agency priorities and progress made. Until new processes are established, no new funding announcements may be issued without approval from the designated senior appointee.
Senior appointees are instructed not to automatically approve recommendations but instead use independent judgment when evaluating awards. The principles outlined include advancing presidential policy priorities through discretionary awards; prohibiting funds from being used for racial preferences or discrimination, denial of binary sex in humans, illegal immigration support, or activities considered contrary to American values; preferring institutions with lower indirect cost rates; distributing grants across a broad range of recipients; emphasizing compliance with rigorous science standards (“Gold Standard Science”); requiring clear benchmarks for success; prioritizing proven rigor over institutional prestige in awarding science grants; and maintaining peer review as advisory rather than binding.
Further changes will be made by revising federal guidance on grant applications—streamlining requirements—and ensuring all discretionary grants allow termination if they no longer align with agency goals or national interests. There will also be efforts to limit administrative costs charged against grant funds.
Within 30 days, agencies must report on their current ability to terminate awards for convenience or based on national interest. Agencies are directed to revise existing terms where possible so future awards can be terminated immediately if they do not advance stated priorities. New terms will require explicit authorization before drawing down general grant funds for specific projects and detailed explanations for each request.
The order clarifies it does not alter any legal authorities granted by law nor create enforceable rights against the United States government.
