The Benton Institute for Broadband & Society reports…

On May 29, 2026, the Office of Management and Budget (OMB) proposes to revise the Guidance for Federal Financial Assistance. The proposals might be among the most consequential changes to federal grant administration in more than a decade, particularly in the breadth of its policy conditions. OMB is proposing to rewrite the foundational rules that govern how nearly every federal grant dollar—including broadband, digital equity, research, and community development funds—is awarded, conditioned, and potentially terminated. Every entity that receives federal grants or cooperative agreements—states, local governments, Tribes, universities, nonprofits, hospitals, and for-profit organizations—could be impacted. That impact includes recipients of broadband funding from the National Telecommunications and Information Administration (NTIA) (Broadband Equity Access and Deployment (BEAD) Program, Tribal Broadband Connectivity Program, Digital Equity Act programs), the U.S. Department of Agriculture (USDA) (ReConnect), the U.S. Department of the Treasury (Capital Projects Fund), and the Federal Communications Commission (FCC) (Universal Service Fund programs, including Lifeline and E-Rate). The proposed rule would embed the current Administration’s policy priorities—including prohibitions on diversity, equity, and inclusion (DEI) activities—directly into the terms and conditions of federal awards. The proposal would also significantly expand agencies’ power to terminate awards mid-stream, require E-Verify participation by all recipients, and shift OMB’s “guidance” into binding regulation. The public comment period closes July 13, 2026.

The article goes on to detail the proposed changes and highlight the potential impact on BEAD recipients.