CatholicVote joins coalition praising OMB grant reforms that would curtail pro-abortion spending

CatholicVote joined a coalition of leaders applauding the Trump administration’s proposed reforms to federal grantmaking rules, arguing that the changes would help curb waste, pro-abortion spending, and fraud in taxpayer-funded programs.

The Conservative Action Project memo, published July 7, praised the Office of Management and Budget (OMB) and Director Russ Vought for advancing reforms to Title 2 of the Code of Federal Regulations and implementing President Donald Trump’s Executive Order 14332 on Improving Oversight of Federal Grantmaking.

“Conservative leaders strongly applaud the Trump administration and OMB Director Russ Vought for advancing critical reforms to Title 2 of the Code of Federal Regulations and implementing President Trump’s Executive Order 14332,” the memo stated.

The memo said that “for too long, billions in taxpayer dollars have funded wasteful, ideologically driven programs that undermine American values, national sovereignty, and fiscal responsibility with little oversight.”

The proposed changes include “curtailing grants for DEI initiatives, gender ideology, child sex mutilation, partisan voter registration drives, and political advocacy while prioritizing merit, increasing transparency, and protecting religious liberty,” according to the memo.

The statement also praised the administration’s plan to give political appointees oversight of the grant review process, arguing that award decisions should reflect the agenda of “a democratically elected president” rather than “the subjective judgment of a federal bureaucrat.”

“These are long overdue course corrections,” the memo stated. “We are confident these reforms will restore accountability to the federal grantmaking process and ensure federal funds serve the American people, not special interests or radical agendas.”

CatholicVote’s Director of Government Affairs Tom McClusky, who was among the memo’s signatories, told Zeale News that the reforms follow increased public awareness of vulnerabilities in federal grant and reimbursement systems.

“Thanks to exposure, the public now has a clearer picture of the widespread fraud and waste embedded in the federal grants system,” McClusky said. “The Trump administration is now working to minimize the abuse of the system, and the Office of Management and Budget is now moving to address these weaknesses.”

“These changes aim to close longstanding loopholes, reduce abuse, and ensure federal grants better serve their intended beneficiaries,” he added.

McClusky also pointed to Planned Parenthood as an example of an organization that could face greater scrutiny under stronger federal oversight rules.

“Under these changes, even abortion-giant Planned Parenthood, which has a long history of defrauding American taxpayers, cannot withstand the scrutiny,” McClusky said.

A Washington Examiner report published July 1 explained that Planned Parenthood employees in Pennsylvania “could be fraudulently obtaining coverage for cross-sex hormones using false diagnoses,” according to health experts.

The report said Planned Parenthood facilities in southeastern and western Pennsylvania described using the billing code for “endocrine disorder, unspecified” when prescribing cross-sex hormones. The Examiner reported that physicians have raised concerns about clinics using that diagnosis to secure Medicaid or insurance coverage for “transgender” treatments.

“In order to meet the needs of most insurance companies and patients, we typically use the code E34.9 (endocrine disorder, unspecified) and occasionally will use F64.9 (gender identity disorder, unspecified) if necessary,” Planned Parenthood of Southeastern Pennsylvania’s website said, according to the Examiner.

The same report revealed that Planned Parenthood of Western Pennsylvania received more than $4.1 million in taxpayer funds between July 2020 and June 2025, while Planned Parenthood of Southeastern Pennsylvania received more than $10.7 million, according to tax filings.

The OMB proposal, formally titled “Regulation for Federal Financial Assistance,” was published May 29 and would revise government-wide rules governing federal financial assistance, including grants, cooperative agreements, and other federal awards. The proposed rule would apply broadly across federal agencies and is scheduled to take effect Oct. 1 if finalized.

A Holland & Knight analysis described the proposal as a significant revision to federal grant rules, noting that it would affect “for-profit and nonprofit organizations, state and local governments, research institutions and healthcare providers, among others.”

The Conservative Action Project memo urged interested individuals and organizations to submit public comments before the rulemaking deadline.

Comments on the proposed rule are due July 13. Readers who wish to weigh in may submit comments through Regulations.gov.

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