Nonprofits in Philadelphia are expressing their concern over a proposed rule change related to the distribution of federal grants.

On May 29, together with about 40 grantmaking agencies, the U.S. Office of Management and Budget (OMB) issued a proposed rule that would give political appointees more control over the federal grantmaking process. If approved, it would make sweeping changes to the Uniform Guidance, a framework for allocating grants, cooperative agreements, and other forms of federal financial assistance.

Independent scientific experts would still be able to review and recommend which projects deserve federal funding, but the political appointees would have the final say. They would base that decision on whether the research coincides with the federal agency’s priorities and “national interest.” Under the proposed rule, agencies can also cancel an award at any time if it is “not effective” at reaching program goals nor the Trump administration’s priorities.

Jed Levin, vice president of the Philadelphia Archaeological Forum and a former longtime archaeologist for the U.S. National Park Service, said there would be a “Sword of Damocles” hanging over federally funded projects because they could be terminated swiftly. He said granting political appointees this type of unprecedented authority would jeopardize the quality and integrity of research.

“Independent research and science … the rule there is to follow the data and to follow where the evidence leads, without regard at all to politics,” he said. “The minute you put a screen that says ‘No, no, this research has to follow a political line,’ you create a fundamentally incompatible approach to research.

“(Then) the consideration is not the value (and) the soundness of the research, but whether it fits a particular political agenda or policy agenda,” he added.

A spokesperson for Fox Chase Cancer Center, which provides medicine and cancer care at Chestnut Hill Hospital and across Temple Health, said the changes would “significantly affect the federal research funding landscape,” including raising the uncertainty around grant award timelines.

In addition, the new OMB rule would reduce support for international collaboration and require researchers to seek federal approval for attending scientific conferences. It prohibits funding for initiatives that promote “anti-American values,” as well as funding for projects that support diversity, equity and inclusion (DEI) programs.

During the comment period, which ended on July 13, nearly 500,000 comments were submitted to OMB. The office is required to address all substantive comments. Officials expect to have a rule in place by Oct. 1.

In its proposal, the Trump administration said the revisions aim to “improve transparency, accountability, and oversight” for federal awards. It includes ensuring that “American tax dollars are not wasted or misused, activities performed under Federal awards are consistent with law and policy, and recipients are held accountable when they fail to meet relevant standards.”

Sara Stevenson, executive director of Friends of the Wissahickon, said in a statement to the Local that the change would be “a huge detriment to nonprofits.”

“The broad concern is that they will shift more demand onto private and foundation grants, which could make the grant pool even more competitive and, ultimately, impact organizations like FOW in that way,” she said.

Hillary Kane is the director of Philadelphia Higher Education Network for Neighborhood Development (PHENND), a network of schools that strengthens civic engagement in Philadelphia. She said the OMB proposal would make grants more susceptible to shifting political priorities as the federal administration changes.

Many initiatives and studies take more than four years to complete, she said. While the administration can provide input, officials shouldn’t be allowed to erase long-term efforts overnight, Kane said.

“There’s this whiplash effect,” she said.

“We don’t want to necessarily go into this world of constant whack-a-mole. I think the nonprofit world and everyone benefits from some level of security, sustainability, and stability,” she added.

Kane said PHENND’s AmeriCorps programs operate under two different grants, and they make up more than 80% of the organization’s overall budget, she said. AmeriCorps is a national organization that recruits millions of volunteers to conduct various types of service. The Department of Government Efficiency (DOGE) attempted to terminate nearly half of the grants for the national program, but that move was blocked by the courts in 2025.

It’s hard to say whether that funding would be targeted again if the new rule change is approved, Kane said.

“The threat of it is sort of always there ... that you could sort of be targeted and snuffed out of existence on a whim, and then at that point, you really have no recourse,” she said. “That is not a great feeling. And I think fewer people will step into the role and do these things. Fewer people will stick their neck out. Fewer people will be doing scientific research in this country.”

Supporters of the changes include The Heritage Foundation, a conservative think tank. The director of OMB, Russel Vought, co-authored The Heritage Foundation’s Project 2025 and once served as vice president of the think tank’s lobbying arm, Heritage Action for America.

“Nonprofits should never have become dependent on the government for their support,” Dan Kowalski, director of the Grover M. Hermann Center for the Federal Budget at The Heritage Foundation, said in a statement. “Nonprofits should not be considered to be an arm of the government, entitled to taxpayer support. Such support should be granted based on merit, and the rule will ensure that is the case.”

Kowalski added the new changes would ensure research “conducted at taxpayer expense” has goals that are consistent with the law and “will of the people as expressed through the electoral process.”

JEVS Human Services in Philadelphia has been helping people achieve economic security and independence for more than 80 years. It receives funding from the Department of Justice, Department of Education and other federal agencies through the state of Pennsylvania. Cynthia F. Figueroa, its president and chief executive, said she’s hoping that Congress and the courts will step forward to prevent the changes proposed by OMB.

“This is yet another maneuver for the federal government to get its way and continue to sort of harm those most vulnerable communities. I do think that there’s a very clear message that has been sent by this administration and I think that they’re trying to find ways to ensure that they can move forward with their policies,” Figueroa said.

On July 1, every U.S. Senate Democrat, including John Fetterman of Pennsylvania, sent a letter to Vought insisting the administration immediately rescind the draft regulations. The lawmakers argued that the proposal undermines and exceeds OMB’s legal authority. The Local has reached out to OMB for comment.

Abby Weiss is an environmental reporter for the Local and a Report for America corps member. She can be reached at abby@chestnuthilllocal.com.