PHI Statement on OMB’s Proposed Overhaul of Federal Grant Rules

On May 29, 2026, the Office of Management and Budget (OMB) proposed the most significant revision to the rules governing federal grants in more than a decade. The proposed rule would change how nearly every federal grant, cooperative agreement, and pass-through award is reviewed, administered, and ended. PHI is deeply concerned that the proposed rule will compromise much-needed federal grant funding for research on and services for direct care workers and those they support.

As written, the rule would permit federal agencies to terminate active awards when a project no longer aligns with shifting political priorities; introduce new layers of political review into funding decisions; restrict support for research that examines or addresses inequities; and limit grantees’ ability to publish and share their findings.

These changes would carry real consequences for the direct care workforce and the people who rely on long-term services and supports. Direct care workers—predominantly women, people of color, and immigrants—remain among the lowest-paid workers in the country, even as demand for their support continues to grow. The federal investments now in question fund much of the evidence-building and many of the programs that help stabilize this workforce and improve care access and quality for older adults and people with disabilities.

PHI encourages researchers, long-term care providers, advocates, and others to review the proposed rule and submit comments describing how these changes would affect their work and the communities they serve. Public comments are due by July 13, 2026, and can be submitted at regulations.gov under docket OMB-2026-0034.