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Enhancing Grant Streamlining: The Impact of the 2025 Executive Order on Federal Grantmaking 

August 7, 2025

Earlier today, President Donald J. Trump signed an Executive Order titled Improving Oversight of Federal Grantmaking, aiming to reform federal grant processes by eliminating wasteful spending and ensuring that taxpayer dollars are used effectively. This order builds upon the 2024 revisions to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly known as Uniform Guidance), which were designed to streamline grant administration and reduce administrative burdens for recipients.   

Key Provisions of the Executive Order 

1. Strengthened Oversight and Accountability 
The Executive Order mandates federal agencies to adopt stronger oversight mechanisms to prevent the misuse of grant funds. Agencies are now required to: 

  • Increase audit and monitoring efforts to ensure that funds are properly used for their intended purposes. 
  • Conduct risk-based assessments to evaluate the effectiveness and compliance of grants and programs. 
2. Enhanced Transparency in Grantmaking 
The Executive Order emphasizes the need for greater transparency across all levels of federal grantmaking. Agencies are directed to: 

  • Publish more detailed information about grant opportunities, including application processes, funding decisions, and program goals. 
  • Ensure recipients and the public have access to the necessary details to understand how grants are awarded and managed, improving trust and accountability. 
3. Streamlined Reporting Requirements 
To ease administrative burdens, the order focuses on simplifying reporting requirements for both agencies and recipients: 

  • Consolidate reporting timelines and reduce redundancies in compliance documentation. 
  • Encourage agencies to use electronic systems for easier submission, tracking, and monitoring of grant progress, thereby saving time for both recipients and grantmakers. 
4. Focus on Performance and Outcomes 
The order directs agencies to shift their focus from compliance alone to performance-based assessments. Agencies must: 

  • Link funding to measurable outcomes, ensuring that grants contribute to tangible public benefits. 
  • Evaluate grants regularly to determine their impact and whether they are achieving the desired outcomes efficiently. 
5. Aligning with Uniform Guidance 
The Executive Order calls for greater alignment with Uniform Guidance (2 CFR 200) by all federal agencies. Key actions include: 

  • Standardizing practices across agencies to reduce confusion and ensure consistency in grant management. 
  • Encouraging agencies to adopt best practices outlined in the Uniform Guidance to improve the effectiveness of grant processes. 
6. Encouraging Efficiency and Cost-Effectiveness
The order underscores the need to make every federal dollar count, urging agencies to: 

  • Evaluate and eliminate inefficient programs or grants that do not produce substantial outcomes. 
  • Streamline grant application and award processes to reduce delays and promote faster access to funding. 
7. Promoting Collaboration Across Agencies 
The Executive Order encourages inter-agency cooperation, aiming to: 

  • Break down silos between departments and foster a collaborative approach to grantmaking. 
  • Facilitate the sharing of data and best practices to improve overall grant effectiveness. 

How Does This Enhance or Change the 2024 Uniform Guidance? 

The 2025 Executive Order further enhances and expands upon the streamlining provisions already outlined in the 2024 Uniform Guidance updates. These updates, which focused on reducing administrative burdens and improving compliance across federal grantmaking, streamlined processes, created standardization, and introduced flexibility to accommodate various types of grant recipients. 

Here’s how the Executive Order complements these changes: 

  • Stronger Oversight and Accountability: While the Uniform Guidance made strides in compliance and transparency, the Executive Order takes this further by mandating stronger audits and performance-based assessments
  • Increased Transparency: The Uniform Guidance focused on improving access to information, but the Executive Order takes this a step further by ensuring that all details related to grant opportunities and decisions are publicly accessible, fostering greater trust in the process. 
  • Performance-Focused Grantmaking: The Uniform Guidance stressed outcome-based reporting to some extent, but the Executive Order takes a more direct approach by aligning funding with measurable outcomes and performance metrics, ensuring grants serve the public effectively. 
  • Streamlined Reporting: The Executive Order supports the Uniform Guidance by further simplifying reporting procedures, making it easier for recipients to meet compliance requirements and reduce administrative overhead. 

Conclusion 

The 2025 Executive Order on Improving Oversight of Federal Grantmaking takes significant steps to enhance the streamlining efforts initiated by the 2024 Uniform Guidance. By focusing on accountability, transparency, performance, and cost-effectiveness, the order promises to ensure that federal funds are used efficiently, driving meaningful outcomes for the communities and organizations that rely on them. 

These updates mark an important evolution in the federal grant process, offering a more transparent, performance-driven, and efficient system that benefits both grant recipients and the taxpayers who fund these programs. 

By aligning with best practices, embracing simplified reporting, and focusing on outcomes, the Executive Order builds on the work already started with the Uniform Guidance updates, ensuring that federal grants continue to serve the public in the most effective way possible.

Managing grants efficiently, without compromising compliance and integrity, can be a challenging task. If your organization is navigating the complexities of grant management, we can help you enhance oversight, streamline processes, ensure outcomes and reduce the risks of waste, fraud, and abuse. Reach out today to learn how our expertise in grants management can ensure your programs meet their goals, stay compliant, and make the best use of taxpayer dollars. 

Authored by: 

Matthew-Hanson_5ec4dda68b6bcab72c5edd90255be92b

Matthew Hanson, CGMS, GPC
Managing Director, Government Advisory Services

 

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