Proposed Rule Gives ED Broad Discretion Over Grant Programs, Adding to Uncertainties

Recommend

The proposed rule would provide broad discretion to the Department of Education to terminate certain grants.

A number of changes to the Department of Education's (ED) general administrative regulations, outlined in an August 24, 2026  notice of proposed rulemaking (NPRM), include requirements governing ED's direct and state formula grant programs. Among ED's grant programs are career and technical education grants, which support education and training in fields like healthcare.

Of particular concern, the NPRM would permit direct grants, which include discretionary grants, to be terminated at the convenience of the Secretary. The NPRM would also remove certain quality criteria for evaluating grant-funded projects, that are based on ensuring equitable and adequate access and participation for project participants who experience barriers based on one or more of the following: economic disadvantage; gender; race; ethnicity; color; national origin; disability; age; language; migration; living in a rural location; experiencing homelessness or housing insecurity; involvement with the justice system; pregnancy, parenting, or caregiver status; and sexual orientation.

Similar to the Office of Management and Budget's Federal Financial Assistance Regulation NPRM, about which LeadingAge expressed significant concerns, ED's proposals would provide the agency with greater discretion over the termination of its awards, increasing risk and uncertainty for grantees. Reducing the predictability around funding and the incentive to serve individuals who have faced barriers to participation can undermine the development of the aging services workforce, which ED's grant programs help support.

The 30-day comment period for the NPRM closes on September 23, 2026.