Nonprofits that receive US federal funding should take note: The Office of Management and Budget (OMB) has officially released proposed updates to the Uniform Guidance, the rules governing federal award administration. Published in the Federal Register, the changes are open for public comment until July 13, 2026.

The proposed revisions are expected to be far-reaching. According to OMB, the updates aim to reduce waste and misuse of taxpayer funds, strengthen accountability for award recipients, and eliminate activities OMB deems unlawfully discriminatory.

These changes follow a series of moves in 2025 and early 2026 targeting DEI-related grant provisions and improper federal payments — and grantees should review the proposed rule carefully.