The Office of Management and Budget published a proposed rule on May 28 that would require political appointees at federal agencies to review and approve all discretionary research grants before they are issued. The 400 page regulation implements President Trump's August 2025 executive order directing agencies to align funding with administration priorities, and grants appointees authority to suspend or terminate awards deemed inconsistent with those goals. The proposal is open for public comment for 45 days. The rule explicitly prohibits federal funding for research on "disparate impact liability theories," diversity, equity and inclusion initiatives, and what the administration terms "child sex mutilation," its phrase for gender affirming care. It also bans grants for voter registration, issue advocacy, and political activities, while prohibiting agencies from excluding faith based organizations as applicants. Jules Barbati Dajches of the Union of Concerned Scientists told Inside Higher Ed that placing political appointees in the position to review and determine funding "would replace merit with loyalty to a political leader." Sarah Spreitzer, vice president of government relations at the American Council on Education, called the document "likely historic," reflecting 18 months of administration priorities, and warned it could conflict with the scientific peer review process. The rule also restricts the use of federal funds for publishing research in scientific journals, permitting such expenses only when "expressly required by statute or approved in advance by the Federal agency." Conference travel funded by grants would face similar restrictions. The OMB argued that publication costs often serve institutional rather than federal program objectives. Debbie Altenburg of the Association of Public and Land grant Universities noted relief that the proposal did not reinstate the previously attempted 15% cap on indirect cost reimbursement rates, which courts and Congress blocked in 2025. However, the OMB stated it will not consider public comments related to indirect cost rate negotiations. Higher education associations are urging members to submit comments before the deadline. The American Council on Education plans to analyze the full proposal before drafting its response, and the Association of American Universities has called for a coordinated effort to challenge provisions that would undermine peer review. If finalized, the rule would take effect in early 2027.