The U.S. Office of Management and Budget (OMB) Uniform Guidance is the set of rules governing most federal grantmaking to nonprofits, state, local, and Tribal governments, and other entities.
On May 29, 2026, OMB proposed sweeping changes to overhaul the Uniform Guidance. If implemented, the proposed changes would create significant risk and instability for recipients of federal grants, including nonprofits, making it more difficult for them to provide vital services to their communities. The proposed changes could also force nonprofits to choose between applying for critical federal funding and adhering to their deeply held beliefs and values, while deterring participation in federal programs and limiting resources available to communities those programs are intended to serve.
In particular, the proposed changes would:
- Grant the executive branch seemingly unlimited discretion over federal grants, contrary to federal law
- Allow federal agencies to withhold, terminate, or suspend federal grants without cause; add new terms and conditions mid-performance; disqualify any proposals that the administration determines are not advancing presidential policy priorities and national interest
- Allow federal agencies to determine discretionary federal awards based on partisan ideology rather than objective criteria; political appointees would be able to exclude certain grantees from consideration using poorly defined criteria
- Threaten congressionally funded federal programs that assist underserved communities and address longstanding racial, social, and other disparities
- Bar any federal funds from being used to promote “unlawful” diversity, equity, and inclusion (DEI) efforts
For more details, see the National Council of Nonprofits’ summary of the proposal and chart of key provisions, or read the proposal in its entirety.
Public Comments Lead to Delay in Uniform Guidance Overhaul
OMB received nearly 500,00 public comments voicing concerns about the proposal, including comments from HSC, signed by 80 members, and the National Council of Nonprofits. Read the comments below:
That advocacy made a difference. The overwhelming response from nonprofits, universities, and other federal grant recipients helped elevate the issue among lawmakers and build momentum for congressional action to slow the proposal from moving forward. On August 8, 2026, the U.S. Senate voted 90 to 6 to approve a continuing resolution (CR) to keep the government open through December 11. Importantly, the CR includes a bipartisan provision temporarily blocking the OMB from finalizing the proposed changes to Uniform Guidance.
However, this is a delay, not a defeat of the proposal. The CR must now be approved by the U.S. House of Representatives before it can be enacted, and Congress must pass the CR by October 1 to avoid a government shutdown. The delay provides Congress or the courts time to prevent the administration from implementing some of the more harmful changes proposed through this rule change.
For now, nonprofit advocates have succeeded in creating space for greater scrutiny of a proposal that could fundamentally affect how federal grants are awarded. HSC will continue working alongside our members and national partners to protect nonprofits’ ability to serve their communities – and you can join us in this effort.
Take Action
There’s no better time than August recess to advocate to Members of Congress while they are home in your district. Between now and September 14, nonprofits can:
- Call or Email your Members of Congress. Contact both Republicans and Democrats and urge them to take action now to block the proposed changes and protect our communities.
- Schedule In-District Meetings with your Members of Congress. Use this time to meet with your delegation or attend their public events to ask them to stop the proposed changes. Use NCN’s August Recess checklist to learn more.
- Publish an Op-Ed or Letter-to-the-Editor in Your Local Newspaper. Help raise awareness about how this harmful proposal will directly harm our community.