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Education Department, NSF Move Forward With Changes to Federal Grant Rules

Andy Feliciotti Ozph P I Jcm UnsplashThe U.S. Department of Education and National Science Foundation moved forward August 24 with separate proposals that would change how the agencies administer federal grants, incorporating elements of a broader overhaul of the governmentwide rules governing federal financial assistance.

The developments could affect colleges and universities that receive federal grants through the two agencies, including how institutions compete for awards, manage grant funding and comply with federal requirements.

The Education Department published a proposed rule Aug. 24 that would revise provisions governing the administration of its federal grants. The proposal would amend the Education Department General Administrative Regulations, known as EDGAR, as well as related provisions governing federal financial assistance. Public comments are due Sept. 23.

The same day, the comment period closed on NSF's proposed Guidance on Financial Assistance, which would replace the agency's current Proposal and Award Policies and Procedures Guide as the primary source of guidance for NSF proposals and awards. NSF published the draft guidance June 24 and accepted comments through Aug. 24.

Both efforts follow a broader proposed revision to the federal government's Uniform Guidance, the rules established in 2 CFR Part 200 that govern administrative requirements, cost principles and audit requirements for federal awards.

The Office of Management and Budget's proposed changes would apply across federal agencies. The Education Department and NSF proposals would apply the changes within their own grantmaking systems. The American Council on Education said Aug. 27 that the agencies are moving ahead with provisions that reflect the pending OMB proposal, even though the governmentwide rulemaking has not been finalized.

For higher education, one of the most significant changes in the Education Department proposal concerns the continuation of multiyear grants.

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