The Trump administration is taking a page out of Project 2025 and proposing a sweeping regulation that would politicize federal funding across virtually all grantmaking agencies and every sector of society. This new proposed rule, which is laid out explicitly in Project 2025, is the most sweeping action yet by the administration to target people and programs that it disfavors, specifically women, people of color, and LGBTQIA+ individuals. If finalized, this regulation would fracture the basic functions of our government and dismantle vital services that sustain our communities. The proposed rule must be withdrawn.

To access a PDF of the fact sheet, click here.

The proposed rule is a key goal of the Project 2025 agenda, which seeks to expand presidential power and impose the White House’s ideological agenda without congressional oversight.

On May 29, 2026, the Office of Management and Budget (OMB), led by one of the chief architects of Project 2025, Russell Vought, released a proposed rule giving agency directors – political appointees handpicked by the president – the power to make funding decisions for at least $1.1 trillion in annual funds. The rule would This proposal is straight out of the pages of Project 2025, which states that grant recipients should be required to accept conditions that “include the President’s priorities.”

The proposed rule ignores the parameters laid out by Congress and instead gives explicit authority to political appointees to determine who gets funding, the obligations placed on grantees, and the termination of grants. It intentionally demotes the expert opinions of scientists and researchers within agencies and introduces substantial risks of unpredictability, misuse, and corruption within the grantmaking process. The proposed rule is a blatant attempt by the Trump administration to hijack the U.S. federal grants system – through which the government funds critical programs and services across the country – and reshape it according to this president’s vindictive and discriminatory agenda.

The Trump administration is trying to impose its ideology on every state and community and entrench its policies for future administrations.

The proposed rule seeks to codify the anti-woman, anti-LGBTQIA+, anti-diversity agenda laid out in Project 2025 and adopted by the Trump administration. It seeks to reshape federal grantmaking now and in the future, which could lead to devastating consequences for many communities.

The vast majority of federal grant funding goes to states, meaning that this proposed rule would undermine state efforts to address inequality because those efforts often conflict with the administration’s campaign against diversity, equity, and inclusion initiatives, as well as its efforts to stigmatize transgender people. As a result, states with strong anti-discrimination protections could face the greatest risk. For example, the rule could ultimately lead to: 

• Defunding school systems that refuse to discriminate against LGBTQIA+ youth or that are working to close achievement gaps for students of color. 

• Imposing funding restrictions on reproductive health care, including abortion, leading to the gutting of programs like those addressing maternal health disparities among Black women. 

• Defunding workforce initiatives aimed at increasing women’s representation in underrepresented fields. 

• Defunding domestic violence programs that refuse to discriminate against transgender survivors or choose to serve specific populations in need. 

• Defunding child care and early learning programs that seek to address systemic inequalities because they support communities that the administration disfavors. 

• Imposing administrative burdens on federal nutrition programs such as the Supplemental Nutrition Assistance (SNAP) Program and the Women, Infants, and Children (WIC) Program.  

This rule must be withdrawn in its entirety.

The proposed rule contains numerous dangerous provisions designed to further Project 2025 and the president’s policy and political agenda, threatening to compromise the quality and reliability of federally funded services in nearly every area. If finalized, it would limit or eliminate access to critical services – widening existing disparities for underserved communities, while actively interfering with efforts to reduce those disparities. The loss of such funding would not only undermine the very fabric of our democracy but also threaten vital services that sustain our communities. OMB must withdraw this rule in its entirety, and Congress must protect communities from these harmful proposed changes by including a provision in a spending bill to prevent OMB from finalizing the rule.