OMB Proposed Revisions to Federal Financial Assistance Rules

OMB Proposed Revisions to Federal Financial Assistance Rules

What Members Should Know

The Office of Management and Budget (OMB) has issued a proposed rule titled “Regulation for Federal Financial Assistance.” The proposal would revise government-wide requirements for federal grants, cooperative agreements, and other forms of federal financial assistance under 2 CFR Part 200, commonly known as the Uniform Guidance.

OMB states that the proposal is intended to improve transparency, accountability, oversight, and efficiency in federal financial assistance programs. The rule may be relevant to AIAA members who receive, administer, partner on, or participate in federally funded research, education, workforce, standards, technology development, or technical exchange activities.

Why It May Matter to the Aerospace Community

Federal financial assistance supports a broad range of aerospace-related activities, including university research, workforce development, technology maturation, standards work, technical publications, and public-private partnerships. Agencies such as NASA, the Pentagon, FAA, NSF, NOAA, DOE, and Commerce use grants and cooperative agreements to support research and innovation across the aerospace ecosystem.

AIAA is reviewing the proposal because several provisions may be relevant to members and institutions involved in federally supported aerospace work. These include provisions related to:

  • Public notice of funding opportunities;
  • Merit review of proposals;
  • Risk review of applicants;
  • Award termination;
  • Foreign collaboration and research security;
  • Access to award records;
  • Conferences and technical meetings;
  • Memberships, subscriptions, and professional activity costs; and
  • Publication and dissemination costs.

AIAA does not view this webpage as legal advice. Members should consult their own counsel, grants administrators, sponsored research offices, or compliance teams to determine how the proposed rule may affect their specific organization.

Comment Deadline

Comments on the proposed rule are due July 13, 2026, unless OMB extends the deadline.

Members may review the proposed rule and submit comments through the Federal Register or Regulations.gov docket associated with the rule.

How to Draft an Effective Comment Letter

Federal agencies receive many comments during rulemakings. The most useful comments are specific, factual, and tied directly to the proposed regulatory text.

A strong comment letter usually includes the following elements:

  1. Identify Yourself and Your Interest

Begin by explaining who you are, what organization you represent, and why the proposed rule matters to you.

Example:

I am submitting this comment on behalf of [Organization], which conducts federally funded aerospace research and partners with universities, federal agencies, and industry on technology development and workforce programs.

  1. State Your Overall Position

Briefly explain whether you support, oppose, or seek clarification or modification of specific provisions.

You do not need to oppose an entire rule to submit a useful comment. Many effective comments support the agency’s goals while recommending changes to avoid unintended consequences.

Example:

We support OMB’s goals of improving accountability and research security but respectfully recommend clarification to ensure that the final rule does not unintentionally discourage participation in federally funded aerospace research.

  1. Cite Specific Sections

Comments are more powerful when they identify the specific section of the proposed rule being discussed.

Examples for this RFI:

  • 2 CFR § 200.205 — merit review
  • 2 CFR § 200.206 — risk review
  • 2 CFR § 200.220 — foreign collaboration or access-related provisions
  • 2 CFR § 200.340 — termination
  • 2 CFR § 200.432 — conferences
  • 2 CFR § 200.454 — memberships and professional activities
  • 2 CFR § 200.461 — publication and printing costs
  1. Explain the Practical Impact

Agencies benefit from real-world examples. Explain how the proposed change may affect your organization, research program, students, workforce, compliance burden, collaborations, or technology transition activities.

Useful comments often answer:

  • What would this provision change in practice?
  • Would it increase cost or uncertainty?
  • Would it affect research participation?
  • Would it affect students, early-career professionals, or smaller institutions?
  • Would it affect collaboration with federal agencies, universities, or industry?
  • Would it affect publication, conferences, standards work, or technology transfer?
  1. Provide the Facts

Where possible, include data, examples, experience with federal awards, or concrete scenarios. Avoid speculation or unsupported assertions.

Less effective:

This provision will hurt innovation.

More effective:

If prior approval is required for all award-related conference participation, federally funded graduate students and early-career researchers may face delays or uncertainty in presenting research results at technical meetings, which could reduce dissemination and slow technology transfer.

  1. Offer a Specific Recommendation

Agencies are more likely to consider comments that propose a workable solution.

Example:

OMB should clarify that reasonable conference, publication, standards-development, and professional activity costs remain allowable when they directly support the objectives of a federal award.

  1. Keep the Tone Professional

Effective administrative comments are respectful, precise, and constructive. Avoid political rhetoric. Focus on the rule, the legal or practical issue, and the recommended solution.

Sample Comment Paragraph

We support OMB’s objective of strengthening accountability and research security in federal financial assistance programs. However, we respectfully encourage OMB to clarify that implementation of proposed § 200.432 should not discourage participation in technical conferences, workshops, or professional meetings where such activities directly support the objectives of a federal award. In aerospace research, conferences and technical meetings are often essential mechanisms for peer review, dissemination of research findings, workforce development, standards development, and technology transition. Clear guidance would help recipients comply with the final rule while preserving the public value of federally funded research.

AIAA’s Role

AIAA is reviewing the proposed rule from the perspective of the aerospace research and innovation ecosystem. AIAA’s interest includes ensuring that federal financial assistance policies support scientific excellence, research security, workforce development, technology transition, and responsible stewardship of taxpayer resources.

Members with questions about their own compliance obligations should consult their organization’s legal, grants, or sponsored research offices.

The proposed rule was published in the Federal Register on May 29, 2026, and OMB describes its objectives as improving transparency, accountability, oversight, and efficiency for federal financial assistance.