President Donald Trump signed an executive order on Thursday to tighten oversight of “frivolous” federal grant funding, a move the White House said would ensure that taxpayer dollars served “the American public” and aligned with the administration’s priorities.
Why It Matters
The Trump administration has clashed with a range of institutions and programs over issues such as pro-Palestinian campus protests against Israel’s war in Gaza, climate change initiatives, transgender policies, and diversity, equity and inclusion (DEI) programs.
Since taking office in January, the Trump administration has terminated numerous contracts and grants, with the Department of Government Efficiency highlighting thousands grant terminations at agencies on its website.
A federal grant is money the U.S. government awards to organizations, institutions or individuals to fund projects that serve a public purpose, such as research, education, health or infrastructure. Grants are not loans and do not require repayment if used as intended.
What To Know
Under the order, future grant award decisions would be subject to heightened scrutiny from both political appointees and subject matter experts.
According to a White House fact sheet published on Thursday, the new review process will verify that each funding opportunity or award “benefits Americans instead of lining grantees’ pocketbooks or furthering causes that damage America.”
The new rules also permit agencies to terminate grants that fail to meet these standards, including cases where recipients use funds in ways deemed inconsistent with the order’s policy objectives.
Agencies would now be required to simplify grant announcements using plain language and broaden the pool of recipients beyond the universities and nonprofits that have traditionally dominated the process.
The administration said the changes were intended to avoid duplication across agencies and encourage a wider array of “meritorious” applicants.
Past federal grants have funded a wide range of initiatives. The administration cited several examples—including funding for “drag shows in Ecuador”; an “unsafe lab in Wuhan, China”; and the development of “transgender-sexual-education programs.”
The administration also cited a 2024 study indicating that more than a quarter of new National Science Foundation grants that year were allocated to DEI initiatives, which it said reflected an ideological bias in funding decisions.
What People Are Saying
A White House fact sheet published on August 7 said: “The Trump Administration has already terminated many wasteful grants. Today’s Executive Order helps ensure that bureaucrats can’t make the same mistakes in the future.”
White House spokesperson Harrison Fields said: “President Trump is ensuring that all taxpayer-funded projects benefit Americans, and the entire administration is committed to ending wasteful grants. The days of unaccountable bureaucrats wasting taxpayer dollars on drag shows in Ecuador and other far-left initiatives are over. Today’s executive action restores merit-based grantmaking and will save billions for the American people.”
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