They're trying to do this to grants already awarded. Attempts to do this to current NIH awards have already been barred by the Federal judiciary:

https://www.highereddive.com/news/judge-permanently-blocks-n...

All of this cases are likely to move up to the Court of Appeals next.

While they claim to be seeking “efficiency” the truth becomes clear if you read carefully. They have restricted the class of grants to which this rule applies to “institutes of higher education”. Why not apply it to for profit companies also??