Plaskett: Trump’s Fed Grant Changes to Affect USVI

M.A. Dworkin

Washington, D.C. - Congresswoman Stacey E. Plaskett issued the following statement regarding President Trump’s Executive Order (EO) “Improving Oversight of Federal Grantmaking” which was issued on August 7, 2025. 

“This latest EO represents another example of a broad national policy from the Trump Administration that will have significant implications for the U.S. Virgin Islands’ federal funding streams. The sweeping directive affects grant recipients across all States and Territories, fundamentally altering how federal agencies manage and oversee grant programs nationwide. 

“Within 30 days of the EO’s issuance, every federal agency head must conduct a comprehensive review and submit a detailed report to the Office of Management and Budget Director examining whether their current grant terms allow for termination based on political alignment with Executive branch goals, whether foreign assistance awards can be terminated in the national interest, and provide a complete inventory of all active discretionary awards and their existing termination provisions. This rapid timeline forces agencies to fundamentally reassess their grant portfolios and oversight structure under new political criteria rather than established performance metrics. 

“The EO fundamentally restructures federal grant-making by centralizing decision-making authority with senior political appointees who will have the power to overtake traditional peer review processes and terminate awards based on policy alignment rather than program performance. Both future and existing awards will face extensive review of applications and projects, enhanced oversight, and alternative agency authorization and require even more detailed justifications for all fund distributions. The EO mandates that future grants include provisions prohibiting recipients from accessing funds without explicit agency approval for each disbursement, essentially replacing automatic funding streams with a request-and-approval system that could significantly delay critical project implementation. 

“Under this new framework, it’s unfortunate that even long-term projects and multiyear commitments may be altered or eliminated, creating uncertainty in fiscal and economic planning, based on political alignment rather than program performance. Given our Territory’s significant reliance on federal grants for disaster recovery, infrastructure, education, and social services, these changes create substantial uncertainty. 

Moving forward, the Virgin Islands must be extremely vigilant about how we manage and spend federal grant funding. I remain committed to working in collaboration with Territorial leadership, federal agencies, and community partners to protect the interests of the Virgin Islands and ensure our residents continue to receive the federal support they deserve and need,” stated Congresswoman Plaskett.

Rights advocates have raised continual concerns over President Trump’s federal funding threats, saying they harm free speech and academic freedom and amount to political interference that can undo decades of progress. The President and his allies defend his steps by saying his Administration is combating ideologies they consider “far left” and “anti-merit.” 

The EO stated that “discretionary awards must, where applicable, demonstrably advance the President’s policy priorities and that subject matter experts would also be involved in decisions on awarding grants. The EO specifically criticized DEI programs, assistance for immigrants who are in the U.S. illegally, and transgender initiatives. It said federal grants shall not be used to fund “any other initiatives that compromise public safety or promote anti-American values.”

According to the White House fact sheet, the new review process will verify that each funding opportunity or award “benefits Americans instead of lining grantees’ pocketbooks or furthering causes that damage America.”

By definition, a federal grant is money the U.S. government awards to organizations, institutions or individuals to fund projects that serve a public purpose, such as research, education, health or infrastructure. Grants are not loans and do not require repayment if used as intended.