Improving Oversight of Federal Grantmaking

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DateIssued:August7,2025

Topic:DEI,LGBTQ+Rights

Thisexecutiveorderchangesthecriteriafordiscretionarygrantfunding andaddsadditionaloversighttothegrantmakingprocesstoensurethat federalgrantrecipientsdonot“compromisepublicsafetyorpromote anti-Americanvalues.”

Theorderprohibitsdiscretionarygrantfundingfororganizationsthat promote“racialpreferences,”acknowledgenon-binaryortransgender individuals,orsupportundocumentedimmigrants.

HOWWILLTHISEXECUTIVEORDERBEENFORCED?

Thisexecutiveorderisprimarilyenforcedbyagencyheadsandthe DirectoroftheOfficeofManagementandBudget(OMB).

Theorderdirectseachagencyheadtodesignateaseniorpolitical appointeetodevelopanewreviewprocesstoensurethatfunding opportunitiesanddiscretionarygrantsadheretothenewcriterionoutlined intheorder.

Theorderhaltsallnewfundingannouncementsuntiltheaforementioned processisfullyimplemented.

Theorderbestowssoleresponsibilityforreviewingdiscretionarygrant applicationstotheagencyhead’sseniorappointeeandrequiresthat appointeetograntdiscretionaryawardstoprojectsthatwouldadvance PresidentTrump’spolicypriorities,whereapplicable.

Theorderinstructstheseniorappointeestofundabroadrangeof organizationsthatproduce“GoldStandardScience.”

PresidentTrumpissuedanexecutiveorderinMaythatestablished “GoldStandardScience,”anewprotocolforscientificexperimentation atthefederallevel.GoldStandardScienceischaracterizedas reproducible,transparent,communicativeoferroranduncertainty, collaborativeandinterdisciplinary,skepticalofitsfindingsand assumptions,structuredforfalsifiabilityofhypotheses,subjectto unbiasedpeerreview,acceptingofnegativeresultsaspositive outcomes,andwithoutconflictsofinterest.

TheordercompelstheOMBDirectortoaddaterminationclauseto discretionaryawardsforconvenience,includingwhentheawardnolonger advancesagencyprioritiesorthenationalinterest.

TheorderrequiresagencyheadstosendareporttotheOMBDirectorwith thenumberofactivediscretionaryawardsattheagency,andwhetherthe awardshaveterminationclauseswithin30daysoftheorder’sissuance.

HOWDOESTHISIMPACTBLACKCOMMUNITIES?

ThisexecutiveorderwillhavesignificantimplicationsforBlackAmericans, asitwilljeopardizefederalfundingforprogramsrunbypublichousing authorities,faith-basedgroups,anduniversitiesthatsupportBlack communities.Discretionarygrantsarefinancialawardsthatfundspecific projectsatvariousamountsbasedonthediscretionoftheadministering agency.

ThisorderwillthreatenfundingforhistoricallyBlackcollegesand universities(HBCUs)thatapplyforfundingtosupporttheirpredominantly Blackstudentbodies.InthewakeofPresidentTrump’sexecutiveorder dismantlingtheDepartmentofEducation,andtheOneBigBeautifulBill Act(OBBBA)reducingthePellGrantallocation,Blackstudentswillface additionalbarrierstoaccessinghighereducationthatwillaffect communitiesofcolorforgenerations.

Over40%ofpublichousingresidenceslistaBlackpersonastheheadof thehousehold,thoughBlackpeopleonlycomprise14.4%oftheUS population.Thisorderwillmakeitmoredifficultforpublichousing authoritiestoseekfundingopportunities,whichwilldisproportionately impactBlackfamilies.

Thisorderalsogivespoliticalappointeestheauthoritytooverseefederal grantsandrequiresthemtoconsidertheorganization’salignmentwith PresidentTrump’spolicyprioritiesasgrantmakingcriteria.President Trumpwonjust16%oftheBlackvotein2024,andrecentpollingfoundthat 83%ofBlackAmericansdisapproveofhistimeinoffice.Thisorderwill makeitmoredifficultfororganizationsthatsupportBlackcommunities, LGBTQ+individuals,andundocumentedimmigrantstoreceivefederal fundingbyoverridingprecedentandpenalizingorganizationsthatarenot politicallyalignedwiththePresident.

MembersoftheCongressionalBlackCaucus(CBC)havespokenout againsttheTrumpAdministration’seffortstoeliminateDEIfromthe federalgovernment.

InJanuary,theCBCissuedthefollowingstatementaboutPresident Trump’sexecutiveorderdismantlingDEI:“Insteadofworkingtocreate economicopportunitiesthatwillallowAmericanstogetahead,build generationalwealth,andachievetheAmericandream,President Trumpondayoneofhisadministrationsignedanexecutiveorderto systematicallydismantlealldiversity,equity,andinclusioninitiatives withinthefederalgovernment.[…]Thisexecutiveorderisnotonlya brokeneconomicpromise,itstandsinoppositiontoevidencewhich showsthatdiversityinitiativesimprovethegovernment'sabilityto betterserveourcommunities.”FullStatement

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