4, 2023).WHAT DOES IT MEAN FOR INDUSTRY: OMB’s proposed rule would affect recipients and subrecipients of federal financial assistance. The proposed changes affect everything from basic definitions of terms such as “federal financial assistance” to the standard for mandatory disclosures, the threshold for the disposition of equipment and supplies, audit requirements, socioeconomic policies, prior approval requirements, the treatment of indirect costs, and more. Continue reading for a more in-depth discussion of the main changes included in this proposed rule.The Office of Management and Budget (OMB) has published proposed guidance in the Federal Register. Interested persons and organizations have 60 days from the date of issuance to submit comments. OMB’s proposed guidance provides detailed insight on the changes OMB plans to implement. The changes included therein reflect comments OMB received from federal agencies and the public in response to its Notice of Request for Information. 88 FR 8480 (Feb. 9, 2023).OMB is proposing changes to 2 C.F.R. Parts 1 (About Title 2 of the Code of Federal Regulations and Subtitle A), 25 (Universal Identifier and System for Award Management), 170 (Reporting Subaward and Executive Compensation Information), 175 (Award Term for Trafficking in Persons), 180 (OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Non-procurement)), 182 (Governmentwide Requirements for Drug-Free Workplace (Financial Assistance)), 183 (Never Contract with the Enemy), and 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards).As a whole, OMB’s revisions intend to advance the following objectives:(1) incorporating statutory requirements and administration priorities;(2) reducing agency and recipient burden;(3) clarifying sections that recipients or agencies have interpreted in different ways; and(4) rewriting applicable sections in plain language, improving flow, and addressing consistent use of termsThese changes see