OMB Proposes Sweeping Changes to Federal Grants

June 16, 2026

As an alternative to last year’s federal funding freeze attempts, the Office of Management and Budget (OMB) is proposing sweeping changes to the rules governing more than $1 trillion in federal grants and assistance. Although billed as “oversight,” the proposal broadly expands federal discretion over funding decisions, allowing agencies to withhold or terminate awards or change terms midstream.

An OMB Target List?

At the same time, OMB has directed agencies to compile detailed data on funding to 49 nonprofit organizations, signaling increased scrutiny of the sector.

Now What?

Together, these developments pose major financial, legal, and operational uncertainty for nonprofits. Like last year, it’s important to contact your governors and state and federal lawmakers to share your concerns.

 What You Can Do

Sarah Dobson is Senior Director of Advocacy and Public Policy at Lutheran Services in America.

Funding Opportunities

July 17, 2025

View the latest grant opportunities.

Basic Center Program
The primary purpose of BCP is to provide temporary, emergency shelter and counseling services to youth less than 18 years of age. We award community-based organizations funding to operate short-term shelters (including group home care and host family homes) and provide counseling services to youth who have run away or are experiencing homelessness or housing instability and who are not already receiving services from the child welfare or juvenile justice systems. Closing date for applications: July 23, 2025.

Maternity Group Home
The Maternity Group Home (MGH) program provides street-based outreach, safe, stable, and appropriate shelter, and comprehensive services for pregnant and/or parenting youth ages 16 to under 22 and their dependent child(ren) for 18 months and, and up to 21 months under extenuating circumstances. Service providers must accommodate the needs and safety of the dependent children to include facility safety standards for infants and children on the premises. Closing date for applications: July 23, 2025.

FY2025 Transitional Living Program
The Transitional Living Program (TLP) provides street-based outreach, shelter and comprehensive supportive services to youth ages 16 through 21 for up to 18 months or, under extenuating circumstances, 21 months. In addition to shelter, TLPs provide comprehensive services that support participating youth”s transition to self-sufficiency and stable, independent living. Through the combination of shelter and services, TLP youth are expected to show improvements in four core outcome areas: safe and stable housing, education or employment, permanent connections, and social and emotional well-being. Closing date for applications: July 23, 2025.

Elder Justice Innovation Grants FY2025
The purpose of the EJIG program is to support the development and advancement of new and emerging issues related to elder justice. Funded projects will contribute to the improvement of the field of elder abuse prevention and intervention at large, such as by developing materials, programs, etc. that can be widely disseminated and/or replicated, or by establishing and/or contributing to the evidence-base of knowledge. Closing date for applications: August 11, 2025.

EDA FY25 Disaster Supplemental
Through this Disaster NOFO, EDA will award investments in regions experiencing severe economic distress or other economic harm resulting from hurricanes, wildfires, tornadoes, floods, and other natural disasters occurring in calendar years 2023 and 2024. EDA’s goal under this NOFO is to assist communities recovering from a disaster by realizing opportunities to recover and change the economic trajectory of the community for the better. Closing date for applications: None.

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