Proposal Reflects Key Elements of OMB’s Delayed Uniform Guidance Overhaul

Colleges and universities, state education departments, local school districts, and other Department of Education grantees should review proposed changes to the Education Department General Administrative Regulations (EDGAR) and related provisions in 2 CFR parts 3474 and 3485. The U.S. Department of Education (Department) published its Notice of Proposed Rulemaking (NPRM) in the Federal Register on August 24, 2026, and public comments are due no later than September 23, 2026. 

The Department’s proposed regulatory changes reflect several concepts included in the Office of Management and Budget’s (OMB) proposed revisions to 2 CFR Part 200 (the Uniform Guidance). Those proposed revisions, issued in May 2026, generated nearly 500,000 public comments. On August 8, 2026, the Senate voted to include a provision in the next continuing resolution (CR) that would delay implementation of the revisions until the next round of federal appropriations in December. 

The Department’s announcement demonstrates that individual federal agencies are not necessarily waiting for the proposed Part 200 revisions to become effective before pursuing similar changes to their own grant regulations.

Purpose of Department’s Regulatory Changes

The Department’s NPRM explains that the proposed revisions are intended to:

• Streamline the selection criteria the Secretary may use to make discretionary awards under § 75.210;
• Clarify procedural approaches, including the making of continuation awards under § 75.253; and
• Ensure merit practices and high standards for all grants under §§ 75.500 and 76.500.

Selected Proposed Changes 

Among other changes, the Department proposes to: 

• Revise § 75.901 to enhance the Department’s ability to terminate grants if the awards are found to be “inconsistent with program goals or agency priorities.”  
• Add a new § 75.228 that would allow the Secretary to provide a competitive preference to applicants that propose to charge lower indirect costs than their negotiated rate. 
• Add a new paragraph (f) to  § 75.500, stating that grantees must, among other things, ensure that hiring, admissions, promotions, and compensation practices under a grant are based on merit and high standards, without regard to race, color, religion, sex, national origin, or proxies thereof unless an applicable exception applies, such as for certain religious organizations or an organizations engaged in remedial action.

Similar Regulatory Actions by Other Federal Agencies

The Department is not alone in pursuing agency-specific changes to federal grant requirements. The National Science Foundation (NSF) has proposed an overhaul of its Proposal and Award Policies and Procedures Guide (PAPPG), which sets forth NSF research funding guidance, including revisions to public access timelines, research security, political appointee oversight, and award terminations. The Department of Energy has similarly followed suit with amendments to its regulations, including requirements addressing disclosures of foreign conflicts of interest. 

Stay up to date on developments affecting federal grant requirements by joining Feldesman’s Quarterly Federal Grants Update webinar on August 25 at 1 p.m. ET.

In addition, on September 29 at 1 p.m. ET, Feldesman will offer Higher Education Insights: Fall 2026 Update on Agency Priorities. Geared toward research institutions, colleges, and universities, this webinar will address new obligations and compliance requirements expected to affect institutions of higher education during the remainder of 2026, including the NPRM detailed above.

Feldesman’s federal grants attorneys will continue monitoring these and other proposed changes to federal grant regulations. If you have any questions about how these developments may affect your organization, please contact Phillip Escoriaza, Mindy Pava, or Ted Waters.