Power Grab/Fire anyone who can stop him
The Education Department proposes a rule letting the secretary terminate grants “for convenience” and bind states to executive orders
The August 24, 2026 proposal drew objections from 23 attorneys general and a governor, the NEA and research societies; the department says it intends to finalize it in late 2026.
What happened
On August 24, 2026, the Education Department proposed a rule giving the secretary power to terminate discretionary grants “for convenience.” Published in the Federal Register (91 Fed. Reg. 54666), it revises Sec. 75.901 of the department’s General Administrative Regulations to give notice of that power.
The proposal also lets the secretary give competitive preference to applicants who charge less than their negotiated indirect-cost rate (Sec. 75.228). A third change, to Sec. 76.700, would require states and subgrantees to comply with executive orders.
Comments closed September 23, and the department said it intends to finalize the rule in late 2026. Twenty-three attorneys general and a governor, the NEA and research societies urged withdrawal. They noted that Congress’s continuing resolution bars OMB’s parallel grant rule through December 11.
Who benefited
The secretary of education would gain the power to end a discretionary grant “for convenience.” The department would also gain a way to reward applicants who accept lower indirect-cost rates. Both changes shift leverage from grantees to the department.
Who wanted something
The Education Department wanted termination rights, lower indirect-cost rates and state compliance with executive orders written into its grant rules. It plans to finalize in late 2026. The proposal parallels OMB’s grant rule, which Congress’s continuing resolution bars through December 11.
Who lost out
Universities, researchers, states and subgrantees that depend on discretionary awards would hold grants the secretary can end for convenience. Twenty-three attorneys general and a governor, the NEA and research societies urged withdrawal. States would also have to comply with executive orders.
Why it matters
A grantee that follows every rule could still lose an award under the proposed “for convenience” clause. The Education Department is proceeding even though Congress has barred OMB’s parallel rule through December 11. The proposal is not final; the department’s stated plan is to finish it in late 2026.
Sources Federal Register (primary)California Attorney General (multistate comment) (primary)National Education Association (primary)Inside Higher Ed