Currently government funded research is either open access (and pays the fee) or is closed access for 1 year then becomes open (and is not subject to fees). Now all government research will have to pay open access fees, and the new guidance allows them to request additional funding for open access fees.

Currently the government ranks all grant applications, and funds everyone until it runs out of money. Under the new system it will run out of money sooner -- especially for smaller grant programs for early career grad students and undergrads.