AIR Joins 73 Higher Ed Groups Opposing OMB's Federal Grants Rule

The Association for Institutional Research (AIR) has joined the American Council on Education (ACE) and 72 other higher education associations in comments opposing the Office of Management and Budget's (OMB) proposed rule on federal financial assistance. ACE submitted the letter on July 8, 2026, in response to the proposed “Regulation for Federal Financial Assistance” (Docket OMB-2026-0034).

The proposed rule would rewrite the Uniform Guidance that governs federal grants. Published in the Federal Register on May 29, 2026, it would give agencies broader authority over how grants are awarded, managed, and ended.

At the center of the letter is a shift from merit review to greater political control. The signatories warn that the rule would make expert peer review “advisory” rather than central to grant decisions and would let officials weigh applicants against vague standards. They also object to new authority to terminate awards mid-project without an appeals process.

The letter flags other concerns: restrictions on research costs such as publication fees and conference attendance, an expansion of limits on collaboration with China across all agencies, and prohibitions tied to diversity, equity, and inclusion and “gender ideology” that it calls poorly defined. It also questions a 45-day comment period and an October 1, 2026, implementation date.

For Institutional Research and Effectiveness (IR/IE) professionals at research institutions, the rule could reshape how federally funded work is reported, funded, and sustained. The associations urge OMB to withdraw the rule and restart the process with the higher education community.