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The Trump Administration’s Proposed Grant Reform May Lead To More Earmarks

The changes could lead to an increase in congressional earmarks, which are associated with higher spending and institutional corruption.

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The Trump administration proposed a federal rule earlier this year that would give the executive branch more control over federal grants. The comment period on the rule recently closed, but if it gets finalized, it will have significant implications for the federal government.

The changes would drive accountability for decision-making in grant programs back to political players and away from the unelected bureaucracy. However, they could also lead to an increase in congressional earmarks, which are associated with higher spending and institutional corruption.

In addition to making some minor and clerical alterations, the rule proposed by the Office of Management and Budget (OMB) contains several significant policy changes to the grant-making process. To start with, political officials would have the final sign-off on all grant approvals. In addition, grant recipients would be required to acknowledge that an administration can terminate a grant without warning due to a change in policy priorities.

The first change is in line with a series of Supreme Court rulings in recent years, which have attempted to take decision-making powers away from the institutional bureaucracy and restore those powers to the political (i.e., executive and legislative) branches. The second change responds to the numerous lawsuits the second Trump Administration faced after it terminated various grants upon........

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