Opposing proposed changes to governmentwide grant funding

APA Services submitted public comments on the OMB proposed Regulation for Federal Financial Assistance (Docket No. OMB-2026-0034) (PDF, 247KB)opens in new window opposing an Office of Management and Budget (OMB) proposed rule on federal financial assistance requirementsopens in new window that would overhaul the federal framework for grants and cooperative agreements. Published May 29, 2026, the proposal would substantially change how federal financial assistance is reviewed, awarded, managed, and terminated. The comment period closed July 13, 2026.

Among other changes, the rule would give senior political appointees greater authority over discretionary awards, make peer review advisory rather than determinative, require awards to align with administration priorities, restrict certain research topics and activities, and expand agencies’ authority to suspend or terminate grants mid-award. For psychology, these changes could curtail research, including on topics such as health disparities, social determinants of health, and identity-related outcomes, disrupt federally funded training pipelines, and create uncertainty for community mental health services and other programs that depend on stable federal support.

In its comments, APA Services urged OMB to withdraw the proposed rule, warning that it could have far-reaching effects on psychological science, psychology education and training, and behavioral health services nationwide. APA Services emphasized that federal grantmaking should remain grounded in scientific merit, statutory authority and congressional intent—not shifting political priorities. The association also warned that the proposal would undermine scientific integrity, weaken evidence-based decision-making, increase administrative burdens, limit collaboration and dissemination, and threaten continuity for research, training, and service programs. APA Services called for maintaining rigorous expert peer review, fair and transparent grant processes, protection for lawful research and education activities, and sufficient time for meaningful stakeholder engagement before any final rule is considered.

APA Services also joined broader community comments reflecting similar concerns across the American Council on Education comments on the proposed Regulation for Federal Financial Assistance (Docket No. OMB-2026-0034) (PDF, 231KB)opens in new window and the Friends of VA Medical Care and Health Research comments on revisions to the Uniform Guidance for Federal Financial Assistance (PDF, 213KB)opens in new window.

Importantly, APA Services moved quickly after the proposed rule was issued to mobilize grassroots engagementopens in new window, encouraging psychologists, researchers, educators, trainees, clinicians and other stakeholders to submit individualized comments explaining how the proposal would affect their work, institutions, patients, and communities. The public response has been substantial, with nearly 500,000 comments submitted, including from psychologists and other members of the scientific and health communities. The volume and specificity of comments can affect whether OMB revises, delays, or withdraws all or parts of a final rule.

APA Services also emphasized the importance of congressional outreach in this process, recognizing Congress’ oversight role and constitutional authority over federal spending. That outreach is already reflected in elevated bipartisan concern on Capitol Hill, including from Senator Susan Collins (R-Maine), chair of the Senate Appropriations Committee, who asked OMB to withdraw portions of the proposed rule and extend the comment period.

APA Services will continue monitoring the proposed rule through the rulemaking process and working with Congress and coalition partners to ensure federal grant policies advance—not undermine—the research, training, and services that improve lives.

For more information, email Kenneth Polishchuk.