Washington (CNN) The Trump administration has proposed a rule that critics say will allow adoption and foster care agencies to receive federal grants, even if they choose to reject LGBTQ couples as potential parents for religious reasons.

The proposed rule released Friday by the Department of Health and Human Services will remove Obama-era regulations that had banned discrimination based on sexual orientation and gender identity, among other identities, in HHS programs and service -- including adoption and foster care agencies.

The new rule, critics warn, would also permit discrimination against LGBTQ people by other HHS programs receiving federal funding, including programs that help with HIV prevention, youth homelessness, and refugee resettlement.

The reversal would require grantees to comply with anti-discrimination laws passed by Congress, which do not include sexual orientation and gender identity as protected characteristics.

Under the regulation, HHS will have to comply with Supreme Court decisions in issuing its grant programs.

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