ACLU Opposes Sweeping OMB Proposal That Would Politicize Federal Funding and Threaten Essential Services

WASHINGTON — Today, the American Civil Liberties Union submitted a public comment opposing the Office of Management and Budget (OMB) and over 40 federal agencies’ proposed overhaul of federal grant regulations, which would unlawfully reshape how federal funding is awarded and administered while putting essential services at risk across the country.

The proposed rule would impose sweeping and unlawful new restrictions and requirements on recipients of federal funding, creating significant financial risk and administrative burdens for state and local governments, nonprofit organizations, educational institutions, health care providers, and other organizations that deliver critical public services. It would also give federal agencies broad authority to deny or terminate funding based on discriminatory, vague, and politically driven criteria, undermining longstanding civil rights protections and suppressing private speech expressing viewpoints the government disagrees with.

“The Trump administration is weaponizing the federal grants system to advance its political agenda,” said Linda Morris, senior staff attorney in the ACLU Women’s Rights Project. “This proposal would give the administration sweeping authority to deny or cut off funding to organizations that provide essential services by seizing powers Congress never gave it. The result will be the loss of critical resources for people across the country, greater instability for the organizations that serve them, and lasting harm to already vulnerable communities who rely on federally funded programs.”

The ACLU's comment explains that the proposed rule blatantly disregards congressional mandates and established federal law to concentrate unprecedented power over federal funding, which Congress created to serve the public. The proposal would impose unlawful restrictions on funding related to transgender people, gender-affirming care, and reproductive health. It would also impose unlawful bans on diversity, equity, inclusion, and accessibility and so-called “gender ideology” that, by design and in effect, undermine civil rights and civil liberties.

“If implemented, this proposal would make it harder for organizations to meet the needs of the communities they serve. Families could lose access to early childhood education programs, survivors of abuse could face greater barriers to support, researchers could lose funding for lifesaving scientific work, and health care providers could face new obstacles to delivering care,” added Morris.

Additionally, the proposal would create costly new administrative burdens and uncertainty for organizations receiving federal funding, making it more difficult to deliver education, health care, housing, disaster relief, legal services, and other essential programs that millions of Americans depend on.

The ACLU urges OMB and all participating federal agencies to withdraw the proposed rule in its entirety and preserve a federal grants system that is transparent, lawful, and focused on serving the public rather than advancing a political agenda.

The full comment is available here.