Faustian Foundation for the Arts

We have a few new issues of importance to nonprofits for our collective attention.

The Office of Management and Budget (OMB — headed by the ominous Russell Vought of Project 2025 fame) and a number of other agencies jointly published a proposed rule in the Federal Register on May 29, 2026, titled "Federal Financial Assistance." This seems to rewrite the Uniform Guidance rules that come accepting a federal grant. The main points include the following:

• federal grantees will need to certify that their work will be aligned with the president’s policies and priorities;

• the government can change the terms of the grant at any point (including after a project has begun);

• a new regulatory section will create a government-wide policy banning federal assistance that promotes or supports "theories that impose disparate-impact liability based on federally protected characteristics such as race, sex, or age;"and

• the administration can withhold, suspend, or cancel grants at any point (again, including mid-project).

Grantees could even facecriminalliability for failing to meet any of the above.

 Friends, now is the time to go to the National Council of Nonprofits and take action now.

More than 65,000 organizations and individuals have already filed public comments.

Please send your own comment. Add your organization to the National Sign-On Letter. Email or call your members of Congressbefore Monday, July 13.

For more information check out this podcast.

The proposed effective date is October 1, 2026, and changes would apply to new awards, as well as new incremental funding actions in connection with existing awards, on or after that date. Public comments are due by July 13, 2026.

As you know, not a one of us at Ultra Advising is a lawyer and this is not legal advice.You will want to seek legal counsel if are weighing the risks of a federal grant just now. You can also write to us at info@ultraadvising.com to get our intel.

Thanks, friends!