Statement on the Proposed Rule on Federal Financial Assistance (Docket No. OMB-2026-0034)

           

July 14, 2026 - The Phi Beta Kappa Society joined with nearly 50 national higher education organizations in urging the Office of Management and Budget to withdraw and reconsider its proposed changes to federal grant regulations. The partnership between higher education and the federal government reflects a shared commitment to the public good by educating students, expanding knowledge, and contributing expertise that helps communities solve problems and thrive. The Society supports a transparent, fair, and merit-based grantmaking system in which federal funding decisions are guided by expertise, evidence, and the public interest.

Proposed changes, including mid-award termination provisions and new requirements that grant recipients provide written justification for every payment request, could undermine the stability and effectiveness of this important partnership. Sustained public investment in teaching, inquiry, research, and scholarship benefits all Americans by expanding opportunity, strengthening communities, advancing innovation, and enriching our cultural life.