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July 10 2026

California Lawmakers Urge OMB to Rescind Politicized Rule on Federal Grants 

Washington, D.C. — U.S. Representative Kevin Mullin (D-CA-15) joined U.S. Senator Adam Schiff (D-CA.) and 42 members of the California congressional delegation in demanding the Office of Management and Budget (OMB) rescind their proposed regulation for federal financial assistance, emphasizing the crucial need for federal funding for scientific research to remain independent given California’s leadership as the innovation capital of the world and a top recipient of federal research funding. 

“The rule is unprecedented, expansive, and applies across the federal government to every agency that reviews grants and other financial assistance proposals. It would allow political appointees to control all aspects of the grant review process, setting the stage for politically motivated decision-making that places the whims of the President over the well-being of the American people,” the lawmakers wrote.  

The California lawmakers highlight how the administration’s proposed regulation will weaken U.S. scientific research across all fields and impact California stakeholders, undermining OMB’s essential role in coordinating the advancement of federal grants in a nonpartisan manner. California leads the nation in scientific advancements across sectors – including biomedical engineering and quantum computing – and is deeply committed to investing in cutting-edge research in engineering, science, and medical research.  

“The proposed rule would weaken the scientific foundations of experimental research, slowing the development of new treatments, strategies for environmental protection, technologies to expand our knowledge of space, and solutions to some of our most pressing questions,” the lawmakers continued.  

Specifically, the lawmakers point to several areas of research that will be significantly impacted by OMB’s proposed rule:  

  • National Competitiveness and the STEM Talent Pipeline: In light of the administration unlawful suspending of millions in funds for U.S.-based scientific research, the proposed rule will threaten our status as a world leader in science by harming the STEP talent pipeline, create additional barriers for international students and domestic businesses that contribute to our economic viability, and weaken the nation’s ability to compete with China and other countries. 
  • Biomedical and Scientific Research and Development: The proposed rule will politicize agencies’ longstanding science-based review process and prevent major research development of life-saving therapies, medicine, and preventive interventions for millions of Americans – as well as threaten clinical research efforts for future medical breakthroughs.  
  • Higher Education: California’s universities rely on grants to fund schools and resources – which will all be on the line under the politically motivated restrictions in the proposed rule, jeopardizing the long-term future of our academic research institutions. 
  • State and Local Governments: From disrupting public services to putting vital community projects on hold, the proposed rule abandons vulnerable populations. 

“The effects of this rulemaking could reverberate for generations. With such funding uncertainty and unpredictability, California and the rest of the country will backslide behind other nations in the areas of health, innovation, research, and scientific development. As such, we strongly urge you to rescind your proposed rule,” the lawmakers concluded.  

The full text of the letter can be found here.

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