OMB Proposes Revisions to Rules for Federal Grantmaking

The White House Office of Management and Budget (OMB) has proposed revisions to federal grant regulations that would prohibit recipients from using federal funds to support certain diversity, equity, and inclusion (DEI) initiatives, promote what the Administration refers to as “gender ideology,” or facilitate gender transition-related services for minors. The proposal also removes references to the Supreme Court's decision in Bostock v. Clayton County from government-wide grant regulations, reinforces existing nondiscrimination requirements, and adds protections against discrimination toward faith-based organizations seeking federal funding.  

For students with disabilities, the proposal is unlikely to alter core protections under the Individuals with Disabilities Education Act (IDEA), Section 504 of the Rehabilitation Act, or the Americans with Disabilities Act (ADA). However, organizations and educational institutions that receive federal funding may face increased scrutiny of diversity, equity, and inclusion programs, including initiatives focused on disability inclusion, if they are perceived to involve Administration-prohibited practices.  

Supporters argue the changes strengthen compliance with civil rights laws and viewpoint neutrality. At the same time, critics contend they could create uncertainty for schools and service providers and discourage efforts aimed at addressing disparities affecting students with disabilities and other historically underserved groups. 

To view the Federal Register and/or submit comments by July 13, 2026, visit here.