Enhancing Scrutiny of Federal Grant Distribution
In an effort to increase transparency and efficiency, the 2025 Executive Order aims to strengthen political oversight and control over federal discretionary grants, including those for scientific research and diversity, equity, and inclusion (DEI) initiatives.
The order mandates senior political appointees to review and approve all new funding opportunities and discretionary awards to ensure alignment with agency priorities and the national interest. This includes the power to retroactively review, modify, or terminate existing awards if they do not align with these priorities.
The Executive Order expresses skepticism towards DEI funding, categorizing such initiatives among "radical ideologies" that the administration aims to constrain in its funding decisions. Consequently, grants aimed at DEI may face increased scrutiny, possible reduction, restructuring, or termination if deemed inconsistent with the administration's "America First" policies or national interests.
The EO also calls for appointee-led reviews of all grant announcements and awards to prevent duplication across agencies and ensure consistency with political priorities. It introduces formal accountability mechanisms holding officials responsible for award selections. A requirement that discretionary awards demonstrably advance the President's policy priorities could lead to conflicts between Congressional mandates and executive priorities for research funding.
The order seeks to revise the Uniform Guidance to streamline application requirements and clarify discretionary grants. It requires written explanations or support for requests for each drawdown of general grant funds. The order encourages prioritizing institutions with lower indirect cost rates for discretionary awards.
The order also prioritizes an institution's commitment to rigorous, reproducible scholarship over its historical reputation or perceived prestige. Notably, the order aims to limit or condition funding for scientific research projects related to diversity, equity, and inclusion, among others, by requiring alignment with the administration's specific priorities and allowing retroactive termination or restructuring of awards that fall outside those bounds.
In addition, the order addresses concerns about the misuse of taxpayer funds. It prohibits recipients from directly drawing down general grant funds for specific projects without the affirmative authorization of the agency. Taxpayer-funded grants have gone to non-governmental organizations that provided free services to illegal immigrants, worsening the border crisis and compromising safety.
The order commits to achieving Gold Standard Science in discretionary awards, with clear benchmarks for measuring success. However, a significant proportion of the results of federally funded scientific research projects cannot be reproduced by external researchers. The order seeks to address this issue by encouraging an emphasis on reproducible research.
The order also addresses the concern that the grant review process undermines the interests of American taxpayers. Writing effective grant applications is complex, and grant applicants who can afford legal and technical experts are more likely to receive funds. The order encourages prioritizing institutions that can demonstrate a strong commitment to the public good and transparency.
The order also addresses the issue of university-led research, stating that a substantial portion of many Federal grants for university-led research goes to university facilities and administrative costs instead of scientific project applicants or groundbreaking research. The order suggests awarding discretionary grants to a mix of recipients likely to produce immediate results and those with potential for long-term, breakthrough results.
In summary, this Executive Order tightens control over federal grant funding with a strong political overlay and is expected to significantly increase political oversight and control over federal discretionary grants, including those for scientific research and DEI initiatives. The order aims to improve the process of Federal grantmaking and end waste of tax dollars.
[1] White House, Executive Order on Strengthening the Federal Government's Competition and Improving the Quality of Grant Awards, 2025. [2] Office of Management and Budget, M-25-21: Revising the Uniform Guidance to Achieve Gold Standard Science in Discretionary Awards, 2025. [3] Department of Health and Human Services, Policy Announcement on Grantmaking for Diversity, Equity, and Inclusion, 2025. [4] National Institutes of Health, NIH Funding for Gain-of-Function Research in Wuhan, China, 2020. [5] National Science Foundation, NSF Funding for AI-Powered Social Media Censorship Tools, 2024.
- The 2025 Executive Order, aiming to enhance transparency and effectiveness, aims to fortify political control over federal grants, including those for scientific research and diversity, equity, and inclusion (DEI) initiatives.
- The order mandates senior political appointees to scrutinize and approve all new funding opportunities and discretionary awards, ensuring they align with agency priorities and the national interest, including the power to retroactively review, modify, or terminate existing awards if they deviate from these priorities.
- Skepticism in the Executive Order towards DEI funding characterizes such initiatives as among "radical ideologies", with grant proposals focused on DEI likely to face increased scrutiny, potential reduction, restructuring, or termination if deemed inconsistent with the administration's "America First" policies or national interests.
- The order prioritizes institutions with lower indirect cost rates for discretionary awards and encourages prioritizing institutions that can demonstrate a strong commitment to the public good and transparency. In addition, funding for scientific research projects related to diversity, equity, and inclusion may face restrictions and conditions, requiring alignment with the administration's specific priorities.
