White House to Tighten Grip on $1 Trillion in Federal Grants (1)

The White House is proposing a far-reaching rewrite of the rules on federal grants, consolidating its power over who benefits from federal financial assistance and what they can do with that money.

A 412-page proposal published Thursday by the Office of Management and Budget could be the biggest overhaul of how the federal government distributes assistance in decades. Agencies distribute more than $1 trillion a year in research grants, support for local governments and small businesses and farm subsidies.

The White House said the changes were necessary to prevent wasteful spending, and cites a litany of ideological objections to grant-funded ...