This is what Americans asked for.
President Donald Trump’s White House is launching a massive crackdown on wasteful federal spending in a move supporters say could save American taxpayers billions — and possibly reshape how Washington hands out money forever.
The Trump administration’s Office of Management and Budget (OMB) is preparing sweeping reforms targeting nearly $1 trillion in federal grant programs after officials uncovered what they described as major weaknesses in the system during the Biden years.
Administration officials say the changes are designed to stop fraud, increase accountability, protect taxpayer dollars, and ensure federal money supports American values instead of political activism.
The reforms are expected to impact more than 190,000 federal grants, many approved during the final stretch of former President Joe Biden’s administration.
According to officials familiar with the plan, the Department of Health and Human Services — which controls roughly $85 billion in annual grant spending — and the Department of Transportation — which oversees another $45 billion — will likely see some of the largest reforms.
Trump Team Pushes “Pay For Performance” Model
Under the proposal led by OMB Director Russ Vought, political appointees selected by President Trump will have final approval authority over federal grants.
The administration also plans to dramatically expand oversight using the Treasury Department’s “Do Not Pay” system, a federal database designed to identify fraud, improper payments, and suspicious financial activity before taxpayer money is distributed.
Officials argue the old system allowed organizations to collect taxpayer-funded grants for years without proving results.
“In many cases, recipients kept getting paid regardless of performance,” one administration official explained. “The Trump administration believes taxpayer dollars should deliver measurable results, not automatic payouts.”
Under the new rules, grants that fail to meet performance standards or violate administration priorities could be canceled.
New Rules Would Tighten Oversight
The reforms would also require organizations receiving federal grants to use the E-Verify system to confirm eligibility and ensure taxpayer-funded money is not improperly distributed.
Federal grant announcements would also be standardized in English, another move officials say is designed to improve transparency and consistency.
In addition, valid fraud complaints involving grant recipients would now have to be referred to inspectors general and the office of U.S. Attorney Jeanine Pirro within 10 days instead of remaining trapped in slow-moving internal investigations that can drag on for years.
Supporters say the faster reporting system could help stop fraud before losses spiral out of control.
White House Targets DEI And “Green New Scam” Spending
The Trump administration is also making it clear that grants connected to policies opposing the president’s agenda are now under review.
That includes funding tied to Diversity, Equity, and Inclusion (DEI) programs, taxpayer-backed “gender ideology” initiatives, and expensive green energy projects that critics often refer to as the “Green New Scam.”
Officials say grants that drift away from the administration’s policies may now be suspended or terminated even after funding has already started.
“If taxpayer money is being used against the priorities and values of the American people, the administration believes it has the authority to stop it,” one official said.
Crackdown Follows Years Of Fraud Concerns
Trump officials argue the tougher oversight is badly needed after massive fraud scandals uncovered during the COVID-19 pandemic cost taxpayers hundreds of billions of dollars.
Conservatives have long argued that weak oversight and bloated bureaucracy allowed waste, abuse, and politically motivated spending to explode under Biden-era policies.
The Trump administration has already taken aggressive action this year by freezing billions in federal block grant funding flowing to several Democrat-led states pending review.
Earlier this year, a government oversight team headed by Vice President JD Vance pulled back close to $260 million in Medicaid funding allocated to Minnesota after officials raised concerns about possible fraud and misuse of taxpayer money.
Conservatives Praise Move To Protect Taxpayers
Many conservatives are applauding the reforms as a long-overdue effort to restore accountability in Washington and prevent taxpayer dollars from funding controversial political programs.
Supporters argue the changes could save Americans billions while forcing federal agencies and grant recipients to prove results instead of relying on automatic government checks.
Critics, however, are expected to challenge many of the reforms in court, setting up another major legal battle over federal spending and executive authority ahead of the next election cycle.
For millions of taxpayers frustrated by government waste and rising national debt, the Trump administration says this is only the beginning.