The Office of Management and Budget (OMB) released a proposed rule on May 29 that would substantially revise the federal regulations governing grants, cooperative agreements, and other forms of federal financial assistance. The proposal could affect academic medical centers, health systems, medical societies, research institutions, and other organizations that receive or partner on federally funded programs.

Among the proposed changes, OMB would:

• Expand federal authority to impose special conditions, suspend funding, or terminate awards based on compliance or policy concerns.
• Increase monitoring and reporting requirements for organizations collaborating on federally funded projects.
• Require E-Verify participation for employees supported by federal funding.
• Add new certification and compliance requirements related to federal laws, regulations, executive orders, and administration priorities.
• Restrict consideration of diversity, equity, inclusion (DEI), gender identity, and related factors in federally funded activities.
• Strengthen procurement, documentation, internal control, and audit requirements.
• Increase federal oversight of funding decisions which raises concerns regarding academic freedom and scientific independence.

Of particular concern are provisions that could affect medical education, physician workforce development, research collaborations, scientific meetings, educational programs, and public health initiatives that support patient care and innovation.

ASGE is reviewing the proposal and has identified provisions that raise serious concerns for academic medicine, healthcare organizations, medical societies, and researchers. ASGE will submit comments to OMB. The public comment period is open through July 13, 2026.

Read the proposed rule.