Comment by bumby

I think that's reasonable for the "institutional review" aspect of the OP. But regarding the "peer review" aspect, I don't think it works, at least in the bulk of the current framework. Peer-review is typically performed by separate organizations, independent of the funding organization. To expect a national-level organization to essentially take over the duties of peer-review journals is a very big ask (not in small part because the current system benefits from free labor from the reviewers).