As part of the Trump administration’s efforts to implement a broad range of executive orders targeting diversity programs and other policy priorities in federal grantmaking, OMB published a proposed rule on May 29, 2026, that would substantially revise the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (2 C.F.R. part 200). Organizations that receive federal funds should start considering a host of actions to prepare for these changes if implemented, including determining whether any current programs and policies that exhibit DEI characteristics should continue and, if so, documenting their business rationale and legal basis. Organizations will also be required to ensure that they, subrecipients, and downstream contractors update and maintain policies that follow the new requirements, especially as agencies may have broader powers to terminate funding deemed no longer to advance “the national interest.” Finally, organizations should consider submitting public comments to alert the government of provisions that would benefit from more clarity or may cause undue burdens.
Read on to learn more about the background and implementation of these policies.