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Executive Order 14332
Improving Oversight of Federal Grantmaking
Signed August 7, 2025, printed at 90 FR 38929. 6 sections of substance, 2,404 words.
This order tightens checks on federal grants. Each must be signed off by a political appointee.
Sec. 1. Purpose
Every tax dollar the Government spends should improve American lives or advance American interests. This often does not happen. Federal grants have funded drag shows in Ecuador, trained doctoral candidates in critical race theory, and developed transgender-sexual-education programs. In 2024, one study claimed that more than one-quarter of new National Science Foundation (NSF) grants went to diversity, equity, and inclusion and other far-left initiatives. These NSF grants included those to educators that promoted Marxism, class warfare propaganda, and other anti-American ideologies in the classroom, masked as rigorous and thoughtful investigation. The harm imposed by problematic Federal grants does not stop at propagating absurd ideologies. An unsafe lab in Wuhan, China--likely the source of the COVID-19 pandemic--engaged in gain-of-function research funded by the National Institutes of
Every tax dollar the Government spends should improve American lives or advance American interests. This often does not happen. Federal grants have funded drag shows in Ecuador, trained doctoral candidates in critical race theory, and developed transgender-sexual-education programs. In 2024, one study claimed that more than one-quarter of new National Science Foundation (NSF) grants went to diversity, equity, and inclusion and other far-left initiatives. These NSF grants included those to educators that promoted Marxism, class warfare propaganda, and other anti-American ideologies in the classroom, masked as rigorous and thoughtful investigation. The harm imposed by problematic Federal grants does not stop at propagating absurd ideologies. An unsafe lab in Wuhan, China--likely the source of the COVID-19 pandemic--engaged in gain-of-function research funded by the National Institutes of
This states the case the order makes. It says every tax dollar should help people here. It says grants often fail that test. It names a drag show abroad. It names race theory training. It cites a study on science foundation grants. It says a quarter went to such causes. It also names lab work in Wuhan.
Sec. 2. Definitions
For purposes of this order: (a) The term ``agency'' has the meaning given to it in section 551 of title 5, United States Code, except that such term includes only agencies that have the statutory authority to award, offer, or manage Federal grants [[Page 38930]] and does not include the Executive Office of the President or any components thereof. (b) The term ``agency head'' means the highest- ranking official or officials of an agency, such as the Secretary, Administrator, Chairman, Director, Commissioners, or Board of Directors, unless otherwise specified in this order. (c) The term ``Director'' means the Director of the Office of Management and Budget (OMB). (d) The term ``discretionary award'' or ``discretionary grant'' means a grant that is a ``discretionary award'' as that term is defined in 2 CFR 200.1. It does not include programs where legislation establishes an entitlement to
For purposes of this order: (a) The term ``agency'' has the meaning given to it in section 551 of title 5, United States Code, except that such term includes only agencies that have the statutory authority to award, offer, or manage Federal grants [[Page 38930]] and does not include the Executive Office of the President or any components thereof. (b) The term ``agency head'' means the highest- ranking official or officials of an agency, such as the Secretary, Administrator, Chairman, Director, Commissioners, or Board of Directors, unless otherwise specified in this order. (c) The term ``Director'' means the Director of the Office of Management and Budget (OMB). (d) The term ``discretionary award'' or ``discretionary grant'' means a grant that is a ``discretionary award'' as that term is defined in 2 CFR 200.1. It does not include programs where legislation establishes an entitlement to
This defines terms. Agency means a body that can award grants. The White House itself is left out. Agency head means the top official there. A secretary or a board may hold that role. Director means the head of the budget office. A discretionary grant is one the agency chooses to give. Entitlement programs are not covered.
Sec. 3. Strengthening Accountability for Agency Grantmaking
(a) Each agency head shall promptly designate a senior appointee who shall be responsible for creating a process to review new funding opportunity announcements and to review discretionary grants to ensure that they are consistent with agency priorities and the national interest. For the avoidance of doubt, this process shall not guarantee any particular level of review or consideration to funding applicants except as consistent with applicable law. As consistent with applicable law, this review process shall incorporate, at a minimum: (i) review and approval of agency funding opportunity announcements by one or more senior appointees or their designees; (ii) continuation of existing coordination with OMB; (iii) to the extent appropriate to the subject matter of the announcements, review by designated subject-matter experts as identified by the agency head or the agency head's designee;
(a) Each agency head shall promptly designate a senior appointee who shall be responsible for creating a process to review new funding opportunity announcements and to review discretionary grants to ensure that they are consistent with agency priorities and the national interest. For the avoidance of doubt, this process shall not guarantee any particular level of review or consideration to funding applicants except as consistent with applicable law. As consistent with applicable law, this review process shall incorporate, at a minimum: (i) review and approval of agency funding opportunity announcements by one or more senior appointees or their designees; (ii) continuation of existing coordination with OMB; (iii) to the extent appropriate to the subject matter of the announcements, review by designated subject-matter experts as identified by the agency head or the agency head's designee;
This adds a review step. Each agency head must name a senior appointee. That person builds a review process. New grant notices go through it. So do the grants themselves. The test is agency aims and the national interest. Senior staff must approve notices. The budget office stays involved. Experts review where the topic calls for it.
Sec. 4. Considerations for Discretionary Awards
(a) Senior appointees and their designees shall not ministerially ratify or routinely defer to the recommendations of others in reviewing funding opportunity announcements or discretionary awards, but shall instead use their independent judgment. (b) In reviewing and approving funding opportunity announcements and discretionary awards, as well as in designing the review process described in section 3(a) of this order, senior appointees and their designees shall, as relevant and to the extent consistent with applicable law, apply the following principles, including in any scoring rubrics used to assess grant proposals: (i) Discretionary awards must, where applicable, demonstrably advance the President's policy priorities. (ii) Discretionary awards shall not be used to fund, promote, encourage, subsidize, or facilitate: (A) racial preferences or other forms of racial discrimination by the
(a) Senior appointees and their designees shall not ministerially ratify or routinely defer to the recommendations of others in reviewing funding opportunity announcements or discretionary awards, but shall instead use their independent judgment. (b) In reviewing and approving funding opportunity announcements and discretionary awards, as well as in designing the review process described in section 3(a) of this order, senior appointees and their designees shall, as relevant and to the extent consistent with applicable law, apply the following principles, including in any scoring rubrics used to assess grant proposals: (i) Discretionary awards must, where applicable, demonstrably advance the President's policy priorities. (ii) Discretionary awards shall not be used to fund, promote, encourage, subsidize, or facilitate: (A) racial preferences or other forms of racial discrimination by the
This tells reviewers how to judge. They must not just sign off on advice from others. They must use their own judgment. Grants must advance the President's aims. Scoring sheets must reflect that. Grants must not fund racial preferences. Other race based treatment is barred too. More barred uses follow in the order.
Sec. 5. Revisions to the Uniform Guidance
(a) The Director shall revise the Uniform Guidance and other relevant guidance to streamline application requirements and to further clarify and require all discretionary grants to permit termination for convenience, including when the award no longer advances agency priorities or the national interest, but subject to appropriate exceptions, including agreements entered into in furtherance of international trade agreements or those awarded by the Department of Commerce under title XCIX of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283), the CHIPS Act of 2022 (Public Law 117-167), or division F of the Infrastructure Investment and Jobs Act (Public Law 117- 58). (b) The Director shall further revise the Uniform Guidance and other relevant guidance to appropriately limit the use of discretionary grant funds for costs related to
(a) The Director shall revise the Uniform Guidance and other relevant guidance to streamline application requirements and to further clarify and require all discretionary grants to permit termination for convenience, including when the award no longer advances agency priorities or the national interest, but subject to appropriate exceptions, including agreements entered into in furtherance of international trade agreements or those awarded by the Department of Commerce under title XCIX of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283), the CHIPS Act of 2022 (Public Law 117-167), or division F of the Infrastructure Investment and Jobs Act (Public Law 117- 58). (b) The Director shall further revise the Uniform Guidance and other relevant guidance to appropriately limit the use of discretionary grant funds for costs related to
This changes the grant rulebook. The budget office must simplify what applicants file. Every discretionary grant must allow easy cancellation. That includes when it no longer fits agency aims. Some grants are spared. Trade deals are one case. Chip and infrastructure awards are named. Spending on some costs will also be limited.
Sec. 6. Implementation and Termination Clauses
(a) Within 30 days of the date of this order, each agency head shall review the agency's standard grant terms and conditions and submit a report to the Director detailing: (i) whether the agency's standard terms and conditions for discretionary awards permit termination for convenience and include the termination provisions described in 2 CFR 200.340(a), including the provisions that an award may be terminated by the agency ``if an award no longer effectuates the program goals or agency priorities'' or, in the case of a partial termination by the recipient, if the agency ``determines that the remaining portion of the Federal award will not accomplish the purposes for which the Federal award was made''; (ii) whether the agency's standard terms and conditions for discretionary foreign assistance awards permit termination based on the national interest; and (iii) the approximate number of
(a) Within 30 days of the date of this order, each agency head shall review the agency's standard grant terms and conditions and submit a report to the Director detailing: (i) whether the agency's standard terms and conditions for discretionary awards permit termination for convenience and include the termination provisions described in 2 CFR 200.340(a), including the provisions that an award may be terminated by the agency ``if an award no longer effectuates the program goals or agency priorities'' or, in the case of a partial termination by the recipient, if the agency ``determines that the remaining portion of the Federal award will not accomplish the purposes for which the Federal award was made''; (ii) whether the agency's standard terms and conditions for discretionary foreign assistance awards permit termination based on the national interest; and (iii) the approximate number of
This starts a 30 day review. Each agency head checks its standard grant terms. It reports to the budget office. It must say if those terms allow easy cancellation. A rule in the code sets the wording. Grants may end if they no longer serve agency aims. Foreign aid grants get their own test. Counts are reported too.
Sec. 7. General Provisions
Every order carries this. It is not what the order does.
(a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or [[Page 38933]] (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. (d) If any provision of this order, or the application of any provision to any person or circumstance, is held to be invalid, the remainder of this order and the application of its
(a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or [[Page 38933]] (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. (d) If any provision of this order, or the application of any provision to any person or circumstance, is held to be invalid, the remainder of this order and the application of its
This is the closing clause that nearly every order carries. It says the order does not change what the law already allows. It also says no one can sue to enforce it.
How this order is quoted
Each section is quoted as the order prints it, under its own number and heading. Executive orders are United States government works and are not under copyright. Long sections are cut at a sentence and the whole order is a click away.