C.F.R. » Title 2 » CHAPTER II—OFFICE OF MANAGEMENT AND BUDGET GUIDANCE › PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS › Subpart C—Pre-Federal Award Requirements and Contents of Federal Awards

2 C.F.R. § 200.205

Federal agency review of merit of proposals

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Unless prohibited by Federal statute, the Federal agency must design and execute a merit review process of applications for discretionary Federal awards. The objective of a merit review process is to select recipients most likely to be successful in delivering results based on the program objectives as outlined in section § 200.202. A merit review is an objective process of evaluating Federal award applications in accordance with the written standards of the Federal agency. These standards should identify the number of people the agency requires to participate in the merit review process and provide opportunities for a diverse group of participants, including those representing underserved communities. The merit review process explained in this section must be described or incorporated by reference in the applicable funding opportunity. See appendix I to this part. See also § 200.204. The Federal agency must also periodically review its merit review process.

Notes of Decisions
Cited in 4 cases (2 in the last 5 years), 2020–2025 · leading case: Hous. Auth. of the City of Slidell (Fed. Cl. 2020).
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Hous. Auth. of the City of Slidell (Fed. Cl. 2020). · cites it 3× “59 During oral argument, counsel of record for the government retreated to relying upon only 2 C.F.R. §§ 200.205 , 200.207, and 200.338.”
Hous. Auth. of the City of Slidell (Fed. Cl. 2020). · cites it 3× “59 During oral argument, counsel of record for the government retreated to relying upon only 2 C.F.R. §§ 200.205 , 200.207, and 200.338.”
Nat'l Fair Hous. All. v. Dep't of Hous. & Urban Dev. (D.D.C. 2025). · cites it 2× “HUD would still need to “execute a merit review process of applications for discretionary Federal awards,” 2 C.F.R. § 200.205 , and it originally estimated this process would “last[] for approximately 90 days” for the PEI NOFO, see U.”
Schultz v. United States Dep't of State (D. Haw. 2023). “2 C.F.R. § 200.205 . However, there is not a statute or regulation that outlines or dictates the Department of State’s specific review process for grants such as the ones that Schultz applied for.”
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