Take Action by July 13 On Sweeping Proposed Changes to Federal Grantmaking!
On May 29, 2026, the U.S. Office of Management and Budget (OMB) proposed sweeping changes to overhaul the set of rules, known as the Uniform Guidance, governing federal grants, cooperative agreements, and other monetary awards to nonprofits, state and local governments, and other grantees.
If implemented, the proposal would create significant financial risk and instability for federal grantees, including nonprofits, making it more difficult to provide vital services to communities. The proposal attempts to grant unprecedented discretion to any administration to withhold, suspend, or terminate grants, and change terms and conditions mid-performance, forcing grantees to operate in a shifting environment. The proposal would allow an administration to determine federal awards based on partisan ideology, rather than objective criteria, community needs, and congressional intent, while decreasing public transparency throughout the process.
Grantees would be faced with unpredictable financial, legal, and reputational risks that increase the costs of accepting federal awards while decreasing the benefits. Many effective and qualified grantees may be unable to accept those risks. This could lead to disruptions to essential services, including housing, community development, health, education, food, shelter, community services, disaster recovery, and more in communities and states nationwide.
The proposal also threatens important congressionally funded federal programs that help address longstanding racial, social, or other disparities or serve underserved communities. Those most impacted are people of color and their communities, which have experienced historic and ongoing federal disinvestment.
The proposal ultimately threatens our entire nonprofit sector’s ability to accomplish our missions – even if your organization doesn’t currently have this type of funding.
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Joining KNN in signing a national letter
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Using NCN’s comment guide to submit a public comment
For more details, see NCN’s chart of key provisions or read the proposal in its entirety.
KNN flagged our concerns during recent visits with our federal delegation in DC and your frontline voice and stories matter!
Please keep KNN posted on anything you hear and we will continue to keep you updated.
