Press Releases

For Immediate Release                             Contact: Alayah Phipps 

August 26, 2025                                                    202-813-2793 

PRESS RELEASE

CONGRESSWOMAN PLASKETT RESPONDS TO INQUIRIES ON TRUMP ADMINISTRATION’S CHANGES TO OVERSIGHT OF FEDERAL GRANTS

Washington D.C. — Congresswoman Stacey E. Plaskett issued the following statement regarding President Trump’s Executive Order (EO) "Improving Oversight of Federal Grantmaking," 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 override 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 affirmative agency authorization and require even more detailed justifications for all fund disbursements. 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.”

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