OMB Proposes Changes to Federal Grant Rules Affecting Associations

The White House Office of Management and Budget (OMB) has published a proposed rule, Regulation for Federal Financial Assistance, that would revise the Uniform Guidance governing federal grants (2 CFR Part 200). Several of the proposed changes could significantly affect how recipients of federal grant funding participate in association activities. 

A couple of areas stand out for the association community:

• Membership dues: Membership and subscription costs would be allowable only if necessary to fulfill the award requirements and approved in advance by the federal agency. Costs for subscriptions to business, professional, academic and technical periodicals would no longer be allowable. Costs of membership in organizations whose primary purpose is issue advocacy would not be allowable, in addition to the current ban on memberships in organizations whose primary purpose is lobbying.
• Conferences: Costs for attending conferences would only be allowable if participation in the conference is expressly approved by the relevant federal agency and included in the terms and conditions of the federal grant.
• Periodical Subscriptions: Costs for subscriptions to business, professional, academic,and technical periodicals become unallowable with federal grants.

The American Society of Association Executives (ASAE) is conducting a full review of the proposed rule and intends to submit public comments. The association will follow up with members on specific opportunities to participate in this advocacy effort.

Public comments on the proposed rule are due to OMB by July 13, 2026. ASAE will share additional updates and guidance as they become available.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.