Executive Order Introduces New Federal Grant Review Requirements

Executive Order Introduces New Federal Grant Review Requirements

President Trump signed an Executive Order on August 7, 2025, titled “Improving Oversight of Federal Grantmaking,” which establishes new oversight requirements for all federal discretionary grant programs.

The order affects how agencies review and award grants, including telecommunications funding programs, by requiring agencies to designate senior political appointees to review and approve all Notices of Funding Opportunities (NOFO) before they are issued and review all proposed awards before approved. Additionally, agencies must conduct annual reviews of existing discretionary grants to verify they continue to align with current priorities and demonstrate substantial progress toward their goals.

All future discretionary grants must include “termination for convenience” clauses that allow agencies to end awards not only for compliance issues but also if projects no longer advance agency priorities or the national interest. Future grants will also include enhanced financial controls requiring grantees to obtain affirmative agency authorization before drawing down funds and to provide detailed written justifications for each drawdown request.

Next Steps

These changes represent a significant shift in federal grantmaking procedures that may affect both the application process and ongoing grant management requirements. Providers should monitor their relevant funding agencies for updated guidance on application procedures and revised terms and conditions as agencies implement these new requirements.

JSI will continue to monitor developments in federal grant program implementation and can assist clients in understanding how these changes may affect their funding strategies and compliance obligations. For questions about how these new requirements might impact your grant applications or existing awards, please contact Amanda Molina or Brett Hallagan.