Senate Bipartisan CR Blocks OMB Grant Rule, Funds Government Through Dec. 11

WASHINGTON, Senate appropriators struck a bipartisan deal Sunday to fund the federal government through Dec. 11 and temporarily block a Trump administration rule that would give White House political appointees sweeping authority over more than $1 trillion in annual federal grants.

<cite index="9-1">Senate appropriators announced the bipartisan deal Sunday to fund the government into early December, while temporarily blocking the contested Trump administration rule that critics say would politicize the awarding of federal grants.</cite>

<cite index="11-5">The continuing resolution was announced by Senate Appropriations Committee Chair Susan Collins, R-Maine, and Vice Chair Patty Murray, D-Wash.</cite> <cite index="15-6">Government funding runs out Sept. 30 without passage of a CR or a fresh set of 12 fiscal year 2027 appropriations bills.</cite>

The measure differs from a House-passed stopgap that cleared that chamber last month. <cite index="22-3">The draft continuing resolution, unveiled Sunday afternoon, would extend current funding through Dec. 11, a week later than House Republicans proposed in their recent stopgap measure.</cite>

<cite index="20-2">It maintains current spending through Dec. 11 and includes funding adjustments for the Women, Infants and Children nutrition program, disaster relief, housing programs, food assistance for low-income seniors, and national security programs, including shipbuilding.</cite>

The provision drawing the sharpest attention involves the Office of Management and Budget. <cite index="18-13,18-14">The OMB rule would be a major rewrite of 2 CFR Part 200 and give the president and his political appointees unprecedented control over the $1.1 trillion in federal funding that goes out to Americans each year, including the ability to cancel practically any federal contract or grant at any time with little justification aside from that it doesn't match the president's policies or interests.</cite>

<cite index="16-8">Section 157 of the Senate CR would prohibit the Office of Management and Budget from finalizing its proposed reforms to federal grant programs through the length of the CR, December 11, 2026.</cite>

<cite index="22-8">Collins said in a statement she has pushed for "significant changes to the proposed rule," while reiterating concerns about "its potential to politicize grants and harm small, rural communities, families, and biomedical research."</cite>

Murray was sharper in her criticism. <cite index="23-1">"The proposed rule would systematically politicize federal funding and allow Trump officials to cancel grants at any time for any reason," Murray wrote.</cite> <cite index="17-2">Collins has also called on OMB Director Russell Vought to rescind parts of those proposed regulations.</cite>

<cite index="22-1">In a provision that had held up a deal last week, the bill would block a federal rule requiring grants to be approved by senior political appointees, a proposal that triggered an avalanche of public criticism.</cite>

Minority Leader Chuck Schumer, D-N.Y., backed the measure. <cite index="11-10">Schumer called the deal "a responsible path forward" and thanked Murray "for her tireless work on this deal and her success blocking Trump's disgraceful efforts to further politicize all federal grants."</cite>

House Democrats signaled reservations. <cite index="8-4">House Appropriations ranking member Rosa DeLauro called the Senate measure "a clear improvement over the House Republican continuing resolution" but said Congress should be working toward full-year funding bills rather than another stopgap.</cite>

The Senate CR is not without its own points of contention. <cite index="22-5,22-6">The CR does not include an extension of advanced appropriations provided by a bipartisan infrastructure law set to expire on Oct. 1, which amounted to approximately $36.8 billion per year. Democrats had been pushing for such an extension.</cite>

<cite index="22-4">Senate leaders planned to hold a procedural vote Monday evening to limit debate on the legislative vehicle, with hopes of passing the measure before the Senate adjourns at week's end for its August recess.</cite> The Senate is scheduled to recess Aug. 7.

The two-chamber stopgap bills will need to be reconciled before any measure reaches the president's desk.

Sources cited:
- Roll Call (https://rollcall.com/2026/08/02/senates-funding-patch-adds-trump-requests-but-blocks-grant-rule/)
- NBC News (https://www.nbcnews.com/politics/congress/senate-leaders-reach-deal-avert-shutdown-2026-elections-rcna590564)
- CBS News (https://www.cbsnews.com/news/senate-government-funding-midterm-elections/)
- Forbes (https://www.forbes.com/sites/brucelee/2026/08/03/senate-resolution-would-block-new-trump-omb-rule-until-december-11/)
- Senate Appropriations Committee (Murray statement) (https://www.appropriations.senate.gov/news/minority/senator-murray-on-release-of-cr-text)
- National Taxpayers Union (https://www.ntu.org/publications/detail/the-senate-cr-and-the-shutdown-threat)
- Federal News Network (https://federalnewsnetwork.com/federal-newscast/2026/08/senate-cr-would-delay-ombs-grants-rewrite/)
- Government Executive (https://www.govexec.com/management/2026/08/funding-deal-could-spare-agencies-another-shutdown-fight/415179/)
- Common Dreams (https://www.commondreams.org/news/government-funding-2026)
- Bond Buyer (https://www.bondbuyer.com/news/senate-spending-patch-would-delay-controversial-omb-grant-funding-rule)