President Trump has signed an Executive Order directing federal agencies to develop centralized technology systems that will track every payment made under federal grants and contracts. The order, signed on February 26, 2025, also requires agencies to provide brief, written justifications for these expenditures that will be accessible to the public.
The Executive Order mandates a 30-day suspension of contract and grant awards while agencies review their existing contracting and grant-making policies, procedures, and personnel and consult with the DOGE teams assigned to each agency. Following this 30-day review period, DOGE will “issue guidance on signing new contracts or modifying existing contracts to promote Government efficiency and the policies of my Administration,” according to the Executive Order. A proposal being considered is consolidating all contracting into GSA, rather than permit agencies to maintain COs who are knowledgeable of their programs and partner base.
The order also introduces requirements for publicly recording justifications and approvals for federally funded travel to conferences and other non-essential travel, furthering the administration’s stated goal of increasing oversight of government expenditures.
This Executive Order represents a different approach from the January 20th order that was catastrophic to the development and humanitarian relief sectors and its beneficiaries. While both orders focus on government spending, the new directive emphasizes creating systems for transparency rather than immediate cuts or suspensions of programs.
Federal contractors and grant recipients should prepare for increased scrutiny and reporting requirements once the new systems are implemented. The impact on contractors, grantees, and other federal partners remains to be seen as the specific guidance from DOGE is still forthcoming.
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