Colorado’s governor has officially opposed a proposed White House rule that would change procedures for grants, cooperative agreements and other forms of federal financial assistance.

Gov. Jared Polis said the proposal from the White House Office of Management and Budget (OMB) would allow billions in funding for states, cities and local governments to be used as a “political football.”

Introduced in May, the White House said the proposal has three main objectives: improving “transparency, accountability, and oversight” of federal funds, clarifying the effective date and “binding effect” of OMB policies and ensuring that federal awards are not used to “fund, promote, encourage, subsidize or facilitate” diversity, equity and inclusion policies.

Trump has targeted DEI programs across the federal government, arguing they are anathema to his priorities and to merit-based hiring and promotions. He called DEI programs radical, wasteful and discriminatory, adding they elevate immutable characteristics over performance, safety and efficiency.

An executive order issued by Trump in January 2025 ordered the budget office to coordinate the termination of DEI mandates, policies and programs within the federal government, including diversity officer positions, “equity action plans,” and “equity-related” grants and contracts.

The OMB proposal has garnered significant attention since it was introduced; it has received over 340,000 public comments on its website, while the average proposed rule receives about 2,600.

According to Polis, the proposal means the Trump administration could deny, suspend or cancel funding for projects that don’t align with the president’s political agenda, even after funding has been awarded and work has already been initiated.

“Federal funding should be fully competitive and support the best ideas, not reward political allies or punish states that disagree with the President,” Polis said. “Coloradans pay a lot in federal taxes and need to be able to rely on it coming back to us through federal funding for roads, public safety, healthcare, scientific research, and other essential services without worrying that it could be stopped on a political whim. Congress decides how taxpayer dollars should be invested and no President should be allowed to ignore that direction or change the rules halfway through a project.”

According to the state’s Federal Funding Dashboard, Colorado has gotten back over $1.2 billion in funding the federal government has tried to cut since Trump took office.

Before finalizing the rule, OMB is required to review all comments and respond to any significant concerns raised during the process. The agency says it will release a final rule by Sept. 1, with implementation being applied to new grants beginning Oct. 1.