This is my theory as well. Trump knows all the shit these departments/agencies/charities do, which includes all the law breaking shit they do, thanks to Military Intelligence/NSA.
That non-compliance/withholding cash clause is perfect. NSA/Q Team just have to reveal/leak the dirt on these agencies/departments/charities they want to, through their usual outlets for example Julian Assange or Fox News, etc… and they can stop funding them.
That was my theory on this anyway, because this sounds logical to me, and you just posted the proof in the pudding when you posted those clauses from the bill that allows that.
>>o comply with Federal statutes, regulations or the terms and conditions of a Federal award, the Federal awarding agency or pass-through entity may impose additional conditions, as described in §200.207 Specific conditions. If the Federal awarding agency