Take Action by July 13: OMB Proposes Sweeping Changes to Federal Grantmaking Rules

What happened:  On May 29, 2026, the U.S. Office of Management and Budget (OMB) proposed sweeping changes to the Uniform Guidance — the set of rules governing federal grants, cooperative agreements, and other monetary awards to nonprofits, state and local governments, and other grantees. A public comment period is open through July 13, 2026. This is one of the most consequential federal grantmaking proposals in years, and the National Council of Nonprofits is urging nonprofits across the country to take action before the deadline. 

What the proposal would do:  If implemented, the proposal would create significant financial risk and instability for federal grantees. Key provisions would: 

• 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, unpredictable environment. 

• Allow an administration to determine federal awards based on partisan ideology rather than objective criteria, community needs, and congressional intent. 

• Decrease public transparency throughout the grantmaking process. 

• Expose grantees to unpredictable financial, legal, and reputational risks that increase the costs of accepting federal awards while decreasing the benefits — potentially causing many effective, qualified organizations to decline federal funding entirely. 

What is at stake:  Disruptions could affect essential services including housing, community development, health, education, food, shelter, community services, and disaster recovery. The proposal also threatens congressionally funded programs that help address longstanding racial, social, or other disparities or serve underserved communities. For Pennsylvania nonprofits already managing a potential state budget impasse and ongoing federal funding pressures, additional instability in the federal grant environment would compound an already difficult operating landscape. 

What nonprofits can do — three actions before July 13:   

1. Use NCN’s comment guide to submit a public comment directly to OMB — individual organizational comments carry weight in the formal rulemaking record. 
2. Sign a national letter.
3. Email your members of Congress to flag concerns with the proposal. 

Why submitting a comment matters:  The comment period is the formal mechanism through which the public shapes federal rulemaking. Comments from nonprofits documenting the real operational impact of these proposed changes — on service delivery, cash flow, staff capacity, and community outcomes — create the record that courts and future administrations must address.  NCN’s comment guide provides a structured framework.