Information Sharing on Federal Funding: Update August 20, 2025
The big headline in federal grant funding this month is the new Executive Order issued on August 7, 2025: “Improving Oversight of Federal Grantmaking.”
TGP’s Statement on the Order
While The Grant Plant supports transparency and efficiency in federal funding, this order is rooted in misleading assumptions about the integrity of the grantmaking process and the professionals who support it.
The order frames federal grants as mismanaged and overly complex, disregarding decades of processes designed to ensure compliance, impact, and accountability. It undermines subject matter experts, peer reviewers, and experienced grant professionals and politicizes the process by inserting political appointees into decision-making.
The addition of “termination for convenience” when a grant no longer aligns with shifting agency or political priorities also introduces instability and politicizes what should be an impartial, impact-driven process. This threatens to deter organizations from pursuing vital work as the application and management processes become uncertain.
The idea that legal and technical expertise should not be required in application processes ignores the rigor and responsibility required to access and manage taxpayer dollars well.
Further, efforts to “streamline” or limit indirect costs and facilities funding risk weakening the very infrastructure needed to responsibly implement federal programs.
Finally, the order’s rejection of diversity, equity, and inclusion initiatives undercuts the very foundation of American values.
We remain committed to supporting organizations that seek federal funds to serve their communities with excellence. We call for a funding environment that values professionalism, expertise, and impact over political narrative.
Analysis
Now that it has been nearly two weeks after the EO’s release, here’s what we’re seeing:
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Some provisions are more symbolic than substantive. For example, the Biden administration’s OMB already issued guidance requiring plain language. Discretionary grants are already reviewed by panels of subject matter experts.
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Agencies have been told to add senior appointee review before releasing RFPs. In some cases, this may simply formalize existing practice. Importantly, new opportunities continued to appear on Grants.gov until last Friday —both in forecasts and live solicitations. We are hopeful that agencies will continue to issue these forecasts to help organizations prepare. We recommend monitoring forecasts closely. As we’ve seen, some federal grants are coming out with just days or a couple weeks to prepare. As a tool, if they continue to be issued, the forecasts should be monitored to help your lead time.
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The EO directs agencies to broaden the pool of recipients, rather than fund “a select group of repeat players.” This could create opportunities for small or first-time applicants. We recommend that new applicants clearly state their status in proposals, while also highlighting the management systems and controls they have in place to successfully manage federal grants.
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It’s unclear how indirect cost rates will factor into award decisions under this order. This is troubling, given recent progress—such as the de minimis rate* increase from 10% to 15% (effective October 1, 2024). Indirect recovery is essential for covering core costs like admin support, bookkeeping/accounting, facilities, and utilities, all of which are vital for program success, and reflect the true costs of operating a program or conducting a research study.
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The EO prohibits funding for initiatives that reflect so-called “anti-American values.” Combined with the administration’s guidance on “illegal DEI,” this raises significant red flags. Our advice: Continue to apply for federal grants if the opportunity aligns with your mission; review the DOJ guidance memo (non-binding but relevant); ensure your organization is comfortable signing federal certifications; and consider careful framing of your language. It is possible to describe your impact for target populations while avoiding terms under current political scrutiny.
Resource: Language Reframing Guidebook (directs to LinkedIn)
Additional Reading
For deeper legal and policy analysis, there are many articles that dissect the EO. Examples:
You can also read the Grant Professionals Association statement on the Executive Order.
Conclusion
In this moment, it is essential for nonprofit advocates to raise their voices. The National Council on Nonprofits has launched a campaign: Nonprofits Get It Done. Share and support the essential work that nonprofits do for each of our communities.
The Grant Plant will continue monitoring these changes closely and sharing practical insights to help organizations navigate this uncertain landscape.
Free Download
Get an overview and understand what is changing in Federal grantmaking with our free digital download, Overview of Executive Order 14332: “Improving Oversight of Federal Grantmaking.”
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* The de minimis rate is the indirect cost rate organizations can claim if they don’t have a federally negotiated rate.
Professional Development in Federal Grants and Changes to the Landscape
You can join TGP’s Grant Compliance Manager Tonia Brown-Kinzel, GPC, CGMS on a free webinar with partner Instrumentl TODAY, August 20, at 11:00am MT on Navigating the Shifting Federal Grants Landscape.
And if you plan to or are already managing federal grant awards, don’t miss our 3-day, in-person training in Albuquerque. Now, more than ever, it is important to ensure your organization is fully compliant and well-versed in the ins and outs of federal grant management. Join us!
This article is part of The Grant Plant’s bi-monthly series designed to help our partners stay informed about these shifts and better navigate the evolving funding landscape.
This post was filed under: Federal Grants