August Native Federal Grant Oversight News & Affects Explained.
Native American tribal communities are closely watching changes in federal grant policy. The White House recently unveiled a major overhaul of federal grant rules
The “Improving Oversight of Federal Grantmaking” initiative
Which represents the biggest change to grant policy in over a decade gtlaw.com. Announced via Executive Order on August 7, 2025, this long-anticipated update directs government agencies and the Office of Management and Budget (OMB) to tighten grant oversight and streamline the grantmaking process aha.orgfeldesman.com.
It’s intended to reduce red tape, strengthen oversight, and ensure federal dollars are used more effectively across the board. This guidance applies government-wide, affecting states, cities, nonprofits, and tribal governments alike brookings.edu but as someone who works closely with Native American tribes, I want to focus on what it means for tribal communities in particular.
My Take on the New Grant Oversight Changes
In my professional opinion, this update to the OMB Uniform Guidance (2 CFR Part 200) is not about cutting anyone’s funding – it’s about making the system work better. The focus is on a few key areas:
Reducing administrative burden and jargon:
- Agencies are now directed to simplify grant paperwork and write funding announcements in plain language gtlaw.com. Grant applications have long been notoriously complex, favoring those who can afford expert grant writers whitehouse.gov. Smoother, clearer instructions are a welcome change that can help smaller or under-resourced communities navigate grants more easily.
Improving how data informs funding decisions:
- The new rules emphasize results. For example, agencies will include clear benchmarks for measuring a grant’s progress and success aha.org. In practice, this means funding decisions will lean more on solid data and demonstrated outcomes, not just a well-written proposal. You might start seeing more requirements to report measurable goals and outcomes so funders can track impact.
Increasing financial transparency and compliance:
- Expect a stronger spotlight on how money is spent. The guidance calls for tighter auditing and oversight of grant funds. Agencies can even require more detailed justifications for spending for instance, some grants may now come with provisions that you must get approval before drawing down funds and explain why the money is needed feldesman.com. All of this is to ensure accountability: that every dollar is accounted for and used as intended.
Ensuring funds reach the intended communities:
- There’s a clear intent to crack down on waste and make sure funds benefit the people and causes they’re meant to support. Federal officials explicitly want to stop frivolous or “off-mission” grants whitehouse.gov. At the same time, agencies are being encouraged to spread grants to a broader range of recipients, not just the same big universities or nonprofits that win every year aha.org. In theory, this could level the playing field so that smaller tribes and grassroots organizations have a fairer shot at funding.
What Native American Tribes Need to Know
Based on my experience guiding tribal governments through complex grant systems, here are the most important takeaways for tribes right now:
3 Steps Tribal Governments Should Take Now
Change can be overwhelming, but there are concrete steps tribal governments can take right now to adapt and thrive under the new grant oversight landscape:
- Keep a Close Eye on Agency-Specific Changes: Every federal agency will roll out this guidance in its own way and on its own timeline. I highly recommend assigning someone on your team to monitor the Federal Register and updates from the agencies that fund your programs. Watch for new Notice of Funding Opportunity (NOFO) announcements or rule tweaks. (In fact, some agencies might pause or slow down new grant announcements briefly until they sort out their review processes feldesman.com. By keeping informed, you’ll have more lead time to adjust to any new application requirements or reporting rules. Knowledge is power, the sooner you know about a change, the more time you have to comply or pivot.
- Evaluate and Strengthen Your Internal Processes: This is the perfect moment to take an honest look at how your tribal administration handles grant management. Are your grant files organized and complete? Do you have up-to-date policies for budgeting, procurement, and record-keeping? If an auditor reviewed your program tomorrow, would you be confident in the outcome? The new federal guidance puts a premium on accountability. For example, agencies may now insert language in grants that prohibits drawing down funds without explicit approval and detailed justification feldesman.com. That means every transaction might face scrutiny. Use this time to shore up your financial tracking and compliance procedures. If you identify gaps such as staff need training on 2 CFR Part 200 rules, or you need to implement a better system for documenting expenditures, don’t wait. Invest in those improvements now. It’s much easier to handle increased oversight if your house is already in order. And if you need outside help (consultants, auditors, etc.) to get audit-ready, consider bringing them in sooner rather than later.
- Take Advantage of Technical Assistance and Training: You do not have to navigate these changes alone. Many federal agencies offer free training, tools, and technical assistance for their grantees and tribes are often a priority for outreach. For instance, the Department of Justice’s Tribal Financial Management Center provides no-cost training and one-on-one technical assistance to help tribal grant recipients manage their funds properly ojp.gov. They’ll even assist with things like improving financial policies or preparing for grant audits. Other departments (HUD, HHS, EPA, etc.) have similar programs dedicated to tribal capacity-building ojp.gov. Make it a point to seek out these resources. Attend webinars, ask your grant program officers about training sessions, and connect with peer networks. By boosting your team’s grant management skills, you’ll not only meet the new oversight expectations, you’ll also position your tribe to excel (and maybe even to win more grants) in the long run.
Final Thoughts
From my perspective, this oversight, as written, is not bad news for tribes. It’s a wake-up call, yes, but also an opportunity.
The goal is to ensure federal funds truly serve our communities, something we can all get behind. By proactively adjusting to the new rules, tribes can actually end up in a stronger position than before. The simplified application processes and emphasis on plain language are likely to make it easier for many Native organizations to compete for grants on a more level playing field whitehouse.govgtlaw.com. And while the government will be watching spending more closely, that isn’t a threat if you’re prepared it’s a chance to shine by showcasing the great work you are doing with every federal dollar.
Most importantly, remember that tribal sovereignty remains intact.
The U.S. government still has a duty to work with and fund tribal nations for the betterment of Native people brookings.edu. This update doesn’t change that, if anything, it reinforces the importance of getting funds out to the people who need them and to be used in the right way. My advice is to embrace the spirit of these changes. Use them to modernize your grant strategies, tighten up any loose ends in administration, and double down on outcomes that matter to your community.
Change can be daunting, but it can also be empowering. If your tribe wants help navigating the new compliance terrain or strategizing how to take advantage of the evolving grant landscape, please know that I’m here to support you. We have a unique opportunity right now to proactively adapt and thrive, ensuring that federal funding continues to flow to Indian Country and makes an even bigger impact. Let’s commit to turning this policy update into a positive force for our tribes’ future.
We’ve got this, and I’m excited to see Native communities benefit from a grant system that works better, fairer, and more transparently for everyone.
– Mule Deer Consulting, Grant Professionals and Advocates for Indigenous Communities
#NativeAmericanTribes #TribalFunding #FederalGrants #GrantCompliance #TribalSovereignty #OMBUpdate #Nonprofits #IndigenousLeadership
Citations
https://www.gtlaw.com/en/insights/2024/4/office-of-management-and-budget-releases-significant-changes-to-the-uniform-guidanceAdministration announces effort to improve federal grantmaking oversight | AHA Newshttps://www.aha.org/news/headline/2025-08-08-administration-announces-effort-improve-federal-grantmaking-oversightNew Executive Order Mandates More Federal Funding Scrutinyhttps://www.feldesman.com/new-executive-order-mandates-more-federal-funding-scrutiny/A federal grant freeze could disrupt over $24 billion to Native American communities and undermine US obligations to Tribes | Brookingshttps://www.brookings.edu/articles/a-federal-grant-freeze-could-disrupt-over-24-billion-to-native-american-communities-and-undermine-us-obligations-to-tribes/Office of Management and Budget Releases Significant Changes to the Uniform Guidance | Insights | Greenberg Traurig LLPhttps://www.gtlaw.com/en/insights/2024/4/office-of-management-and-budget-releases-significant-changes-to-the-uniform-guidanceImproving Oversight of Federal Grantmaking – The White Househttps://www.whitehouse.gov/presidential-actions/2025/08/improving-oversight-of-federal-grantmaking/Administration announces effort to improve federal grantmaking oversight | AHA Newshttps://www.aha.org/news/headline/2025-08-08-administration-announces-effort-improve-federal-grantmaking-oversightNew Executive Order Mandates More Federal Funding Scrutinyhttps://www.feldesman.com/new-executive-order-mandates-more-federal-funding-scrutiny/Fact Sheet: President Donald J. Trump Stops Wasteful Grantmaking – The White Househttps://www.whitehouse.gov/fact-sheets/2025/08/fact-sheet-president-donald-j-trump-stops-wasteful-grantmaking/Administration announces effort to improve federal grantmaking oversight | AHA Newshttps://www.aha.org/news/headline/2025-08-08-administration-announces-effort-improve-federal-grantmaking-oversightNew Executive Order Mandates More Federal Funding Scrutinyhttps://www.feldesman.com/new-executive-order-mandates-more-federal-funding-scrutiny/A federal grant freeze could disrupt over $24 billion to Native American communities and undermine US obligations to Tribes | Brookingshttps://www.brookings.edu/articles/a-federal-grant-freeze-could-disrupt-over-24-billion-to-native-american-communities-and-undermine-us-obligations-to-tribes/New Executive Order Mandates More Federal Funding Scrutinyhttps://www.feldesman.com/new-executive-order-mandates-more-federal-funding-scrutiny/Tribal Financial Management Center | Office of Justice Programshttps://www.ojp.gov/training-and-technical-assistance/tfmcTribal Financial Management Center | Office of Justice Programshttps://www.ojp.gov/training-and-technical-assistance/tfmc
