This has been bubbling up for a while.
If enacted, it will formalize the illegal termination of grants and undermine the federal government's role as a trusted partner in accelerating R&D.
How do teams plan, hire, and build over the long-term if OMB builds in punishment as a precondition?
Joshua Weitz
For this, read the whole section "Section 200.340 —Termination and suspension"
TL:DR - any grant can be terminated at any time for any reason.