WASHINGTON—NCUA would be swept into a major overhaul of federal grantmaking rules under a new Office of Management and Budget proposal that seeks to tighten oversight of federal financial assistance programs, expand reporting requirements and give OMB greater authority over government-wide grant standards.
OMB said the changes are intended to increase transparency, accountability and oversight of federal grantmaking while reducing recipient burden. The proposal would revise government-wide requirements for grants, cooperative agreements and other forms of federal financial assistance, with agencies required to conform their own regulations. NCUA is specifically listed as a participating agency and would adopt the changes through revisions to 2 CFR Part 6600.
For credit unions, the proposal would give OMB greater direct authority over future government-wide grant requirements. OMB proposes eliminating language that currently describes the Uniform Guidance as “guidance, not regulation,” replacing it with what it calls a “Uniform Grants Regulation” that would carry government-wide regulatory effect without requiring separate rulemakings by every agency each time OMB updates the standards. OMB argues the change would create more consistency, transparency and predictability across federal agencies.
The proposal also would strengthen oversight provisions throughout the grantmaking process, including enhanced conflict-of-interest requirements, mandatory disclosures, expanded reporting expectations, tighter monitoring of subawards and greater authority for agencies to suspend or terminate awards deemed inconsistent with program goals, agency priorities or federal interests. OMB also proposes eliminating certain fixed-amount award structures that it says can limit transparency and oversight because they do not require routine reporting of actual costs.
The rulemaking stems from President Trump’s August 2025 Executive Order on improving oversight of federal grantmaking and repeatedly cites concerns over waste, fraud, abuse and the use of federal awards to advance diversity, equity and inclusion initiatives. Public comments will be accepted for 45 days after publication in the Federal Register.
Inclusiv Responds
Inclusiv shared concerns over OMB's proposal.
"The proposed rule to revise the guidance for federal financial assistance would erode trust in NCUA, Treasury/CDFI Fund, and other federal agencies that through their grant programs provide vital resources that expand the capacity of CDFIs and low income credit unions to provide affordable, responsible, and impactful financial products and services in the communities they serve," Inclusiv said in a statement. "One particularly concerning proposed change would ease the path for the federal government to terminate awards that 'an agency...determines is no longer in the Federal Government's interest,' calling into question the status of any awards received during an election year.
"In addition to incorporating a wide range of anti-DEIA provisions and rolling back social justice-oriented requirements incorporated into federal awards programs under previous administrations, OMB also asserts that certain rulemaking powers that are currently held by individual federal agencies are actually OMB's powers," Inclusiv continued. "This appears to be continuing the agency's efforts to unconstitutionally and unlawfully centralize power within OMB. This rulemaking could not only adverselyimpact the rigor and independence of federal administration and harm the delivery of critical services that fuel our economy and build and strengthen American households"