President Donald Trump today signed an executive order aimed at overhauling the federal grant-making process by tightening oversight to ensure taxpayer dollars are spent in alignment with national priorities.
The order directs federal agencies to conduct more rigorous reviews of funding opportunity announcements and grant awards, placing final oversight in the hands of political appointees and qualified subject matter experts.
Grants that do not meet the new criteria may be terminated, including those found to conflict with administration policy objectives.
A central focus of the executive order is to curb what the administration describes as the longstanding trend of funding projects that do not directly benefit the American people.
The administration highlighted previous federal grants that funded projects including drag shows overseas, academic programs in critical race theory, and controversial health curricula. Also cited were taxpayer-funded initiatives that supported foreign labs conducting gain-of-function research, AI tools for online content moderation, and services for individuals residing illegally in the United States.
A recent analysis noted by the administration pointed to ideological favoritism in federal grant allocations, particularly within the National Science Foundation, where over a quarter of new awards were reportedly tied to diversity, equity, and inclusion (DEI) and similar initiatives.
Agencies are now required to simplify funding announcements using plain language and expand the diversity of grantee types, encouraging a broader range of applicants beyond the traditional recipients, such as major universities and nonprofit institutions. The order outlines specific measures to prevent grants from supporting what it deems to be harmful, wasteful, or ideologically driven activities.
Today’s executive order follows previous efforts by the Trump administration to cut down on federal waste. The administration has canceled thousands of contracts and eliminated grants that are not aligned with US interests, amounting to what it says are billions in savings.
Moving forward, grants will be awarded based on measurable merit and alignment with American priorities. The Executive Order also reinforces the administration’s broader push to strip funding from initiatives associated with what it refers to as radical ideologies, including DEI, gender-focused programming, and expansive climate policies.