President Donald Trump's nominee for the No. 2 position at the White House budget office told lawmakers Wednesday that the administration plans to overhaul the federal grant-making process to ensure taxpayer dollars do not support what he described as "divisive" political causes, Politico reported.

Hal Duncan, Trump's pick to serve as deputy director of the Office of Management and Budget (OMB), said during a Senate Homeland Security and Governmental Affairs Committee confirmation hearing that the administration is preparing new rules that would give political appointees greater authority over more than $1 trillion in federal grants awarded each year.

"The ultimate deciders of these grants will be the political employees at the agencies," Duncan told senators.

The proposed changes, unveiled by the White House last month, would place political appointees in charge of approving or rejecting federal grants for state and local governments, universities, nonprofit organizations and community groups.

Duncan said the new process would help ensure federal spending aligns with Trump's policy priorities while reducing fraud and preventing taxpayer funds from supporting initiatives the administration opposes, according to Politico.

"The result will be that no federal dollars will go to divisive DEI ideologies, woke gender ideologies, illegal immigration," Duncan said.

The administration is expected to finalize the new grant review procedures as early as this summer.

Supporters of the proposal argue the changes will strengthen accountability and ensure federal spending reflects the agenda voters endorsed when they elected Trump.

Wisconsin GOP Sen. Ron Johnson praised the effort, saying it would help direct federal funding toward "things that President Trump actually ran on — his causes."

The proposal, however, has drawn sharp criticism from Democrats, who warn that the administration could use the new approval process to reward political allies and punish critics.

Washington Sen. Patty Murray, the ranking Democrat on the Senate Appropriations Committee, challenged Duncan during a separate confirmation hearing before the Senate Budget Committee on Tuesday.

"That really sounds to me like you all are trying to turn the entire federal government into this one big slush fund to reward those aligned with the administration and punish everyone else," Murray said.

The debate reflects a broader dispute over the role of political appointees in federal spending decisions and the Trump administration's effort to exert greater control over the federal bureaucracy.

The OMB plays a central role in overseeing executive branch spending and implementing presidential priorities across federal agencies.

As deputy director, Duncan would help manage budget policy and coordinate the implementation of administration initiatives across the federal government.

Duncan is already serving as acting deputy director while awaiting Senate confirmation.

Both the Senate Homeland Security and Governmental Affairs Committee and the Senate Budget Committee are expected to vote on his nomination in the coming weeks. If approved, the nomination would advance to the full Senate for a confirmation vote.