The document, prepared by policy analysts from the Office of Management and Budget, outlines the President’s Management Agenda’s Cross Agency Priority (CAP) Goal #8: Results-Oriented Accountability for Grants. It emphasizes the need to modernize government grant management by leveraging a comprehensive approach that integrates advances in technology, data, process optimization, and workforce development. The central objective is to maximize the impact and value of the approximately $700 billion in annual federal grants by creating a risk-based, data-driven framework that balances compliance requirements with demonstrable results for taxpayers.
Key challenges in federal grant management include inefficient, siloed processes, burdensome compliance, unstandardized data, and heightened risks of fraud and waste. The document proposes three core strategies to address these issues: (1) standardizing data to reduce burdens and increase transparency; (2) deploying digital tools to modernize and automate risk management and compliance processes; and (3) establishing a robust risk-based performance management framework that relies on comprehensive data, past performance, and analytics. Implementation will involve extensive stakeholder engagement—ranging from federal agencies to grant recipients and oversight bodies—and phased pilots aimed at shifting from antiquated, compliance-centered monitoring to performance-focused, data-enabled oversight. The ultimate goal is to enhance efficiency, accountability, and public trust in federal grant programs while minimizing recipient burdens and optimizing outcomes.
