AACI is submitting institutional comments on Regulation for Federal Financial Assistance (OMB-2026-0034), a proposed rule posted to the Federal Register on Friday, May 29 by the White House Office of Management and Budget (OMB).
The proposal would require senior political appointees at federal departments and agencies to conduct pre-issuance reviews of discretionary awards to ensure alignment with applicable law, agency priorities, national interest, and presidential policy priorities. According to the OMB, the proposed rule is intended to “improve transparency, accountability, and oversight” for federal awards.
As currently written, the proposal—which spans over 400 pages—has major implications for federal agencies, including the National Institutes of Health (NIH) and National Cancer Institute (NCI). These effects would be amplified by the elevation of many provisions from guidance to regulation. While guidance generally provides agencies and recipients with flexibility in implementation, regulations establish binding requirements that govern the administration of federal awards. Despite its substantial length, the proposed rule provided a 45-day public comment period, with comments due Monday, July 13. If the proposal is finalized, implementation could begin as early as October 2026.
With input from cancer center leaders, AACI has developed comments on several provisions related to grant delivery, permissible research, and the use of grant funding that could impact AACI cancer centers.
Section 200.205 would require review by senior political appointees and clarify that merit review recommendations are solely advisory, threatening the scientific expertise that has guided biomedical research in the United States for decades. By creating layers of bureaucratic red tape, this extra review could also delay award delivery.
Sections 200.340 and 200.341 expand the authority to cancel grants. The proposal would allow agencies to terminate grants if they determine that an award no longer effectuates program goals, federal agency priorities, or national interest. Under the proposed rule, agencies would be permitted to temporarily suspend—and even cancel—grants for any reason and would be required to provide only a brief explanation for the grant termination.
Collectively, these provisions could increase agency discretion over grant awards and terminations and reduce transparency about funding decisions.
Section 200.432 states that “the costs for attending conferences are allowable only if participation in the conference is expressly approved” by the federal agency and “included in the terms and conditions” of the award. However, researchers cannot realistically anticipate every scientific meeting, presentation opportunity, or collaborative activity that may arise over the course of a multi-year grant.
Further, Section 200.461 would make publication costs generally unallowable unless specifically authorized by statute or approved in advance by the federal agency. This could delay the timely publication of federally-funded research findings, slowing the dissemination of scientific discoveries within the broader research community.
Sections 200.218 and 200.300 both relate to the content of research and are ambiguous about what—if any—health disparities research is permissible. Section 200.218 prohibits the use of federal funds for studying “disparate-impact liability based on federally protected characteristics such as race, sex, or age.” Section 200.300 includes new limitations on the use of federal award funds for certain “diversity, equity, inclusion, and accessibility” (DEIA) related activities.
The OMB is legally required to review and address all substantive comments before finalizing a rule, but comments submitted via forms and template letters do not meet these criteria. Specific, evidence-based comments that describe how you or your institution would be affected by the proposed rule or provisions are especially valuable. We urge AACI members to review the proposed rule and submit comments by Monday, July 13.