OMB Proposes Major Changes to Federal Grant Regulations
June 4, 2026 — On May 29, 2026, the Office of Management and Budget (OMB), together with 41 federal agencies, released a proposed rule that would significantly revise the regulations governing federal financial assistance, including 2 CFR Part 200, commonly known as the Uniform Guidance.
OMB states that the proposal is intended to create a more uniform framework for federal awards. However, several provisions could have substantial implications for housing agencies and other recipients of federal funding. OMB has provided a 45-day comment period and intends to finalize the rule by October 1, 2026, for implementation in FY 2027.
Among the proposal’s most notable changes are:
- Renaming the Uniform Guidance as the Uniform Grants Regulation.
- Including certain Executive Orders related to DEI, gender identity, and disparate impact.
- Prohibiting the use of federal funds for voter registration activities.
- Eliminating fixed-amount awards unless specifically authorized by statute.
- Requiring political appointee approval for federal awards.
- Revising definitions that impact eligible use of Federal funds and may affect the status of HUD Annual Contributions Contracts (ACCs).
- Establishing a potential regulatory basis for HUD’s recent cash management policies.
NAHRO is reviewing the proposal and working with partner organizations to evaluate its impact. Additional analysis, member resources, and opportunities for engagement will be shared as the review process continues.