Federal Regulation

Regulation for Federal Financial Assistance

Description 

The Office of Management and Budget (OMB) proposes to revise several parts of the OMB Guidance for Federal Financial Assistance located in title 2 of the Code of Federal Regulations (CFR), subtitle A.  Although called "guidance," the OMB directs codified regulations that govern the federal government's government-wide administration of grants and other forms of federal financial assistance.  The proposed regulations are intended to improve and clarify government-wide policies and requirements related to the management of Federal financial assistance, including grants and cooperative agreements

For higher education, institutions that receive federal grant funding for online learning, educational technology, research, workforce development, or student support initiatives should monitor the changes, as they could affect grant administration, reporting expectations, and compliance requirements for federally funded projects.  Public comment period deadline:  July 13, 2026.

Action to be taken

  • Monitor the rulemaking process and evaluate any final requirements that may affect federally funded digital learning initiatives.
  • Inventory federal grants that support online learning, educational technology, workforce development, or student success projects.
  • Coordinate with grants, finance, and compliance offices to understand potential changes to grant administration and reporting.
  • Review project documentation and data collection practices to ensure they can support future accountability or reporting requirements.
  • Stay informed about institutional policies and procedures that may be updated if the rule is finalized.

Effective Date

Public comment period deadline:  July 13, 2026.

Resources

Regulation for Federal Financial Assistance; Proposed rule published 5/29/26.

 

Regulation progress: Step 1 of 4

  1. Step 1 Notice of Proposed Rulemaking (NPRM) and Public Comment Period (release of proposed regulations)
  2. Step 2 Office of Management & Budget, Office of Information and Regulatory Affairs Review of Final Regulations
  3. Step 3 Release of Final Regulations
  4. Step 4 Effective Date