Senate Passes Stopgap Funding Bill 90-6, Blocking OMB Grants Rule as House Weighs Rival Version

WASHINGTON, The U.S. Senate voted overwhelmingly on Aug. 8 to pass a continuing resolution that would keep the federal government funded through Dec. 11 and temporarily block a contested Office of Management and Budget rule that would overhaul how federal grants are administered.

<cite index="16-1">The Senate voted 90-6 to pass the continuing resolution to fund the government through Dec. 11, or until applicable appropriations acts are passed to fund the government through Fiscal Year 2027, whichever comes first.</cite>

<cite index="16-2,16-3">The bill continues funding at FY 2026 levels for the 12 major appropriations divisions, while including a series of targeted funding allocations, rescissions and program-specific provisions. Critically, the CR delays implementation of the OMB rule overhauling Uniform Guidance, which governs how federal grants can be administered, until Dec. 11.</cite>

The Senate measure differs from a House version passed last month. <cite index="18-1,18-2">On July 21, the House passed H.R. 9770, the Continuing Appropriations Act, 2027, by a vote of 220-205, a "clean" continuing resolution that extends government funding at FY 2026 levels until Dec. 4, 2026.</cite> <cite index="17-7">The House CR does not address the OMB rule.</cite>

<cite index="20-7">The Senate bill includes a number of funding exceptions, or "anomalies," identified by the White House that were not in the House CR.</cite> <cite index="23-11">Those anomalies affect military health programs, national security, national park operations and disaster relief.</cite>

Senate Appropriations Committee Chairwoman Susan Collins, R-Maine, led the chamber's version. <cite index="19-4">Collins released the CR text on Sunday, publishing the Division A Continuing Appropriations Act, 2027, along with an extensions division and a section-by-section summary.</cite>

House Appropriations Committee Ranking Member Rosa DeLauro, D-Conn., welcomed the Senate passage but stopped short of declaring the fight over. <cite index="7-2,7-3">In a statement, DeLauro said the measure delays an OMB regulation that would concentrate power over federal grantmaking in the hands of political appointees, and also restores language precluding the transfer of funds to the Border Patrol without substantial reforms.</cite>

Opponents of the OMB rule argued the stakes are high for research institutions and local governments alike. <cite index="17-6">The Association for Clinical Oncology warned the policy would allow federal agencies to terminate active grants at any time based on shifting priorities, subject approvals to review by political appointees, and defund scientific journal subscriptions and publication fees from federal grants.</cite>

<cite index="22-3">The CR would also provide additional disaster relief funding under the Federal Emergency Management Agency and includes language allowing public housing authorities to repurpose unobligated rental assistance funding to cover costs for households with expiring vouchers through the rest of calendar year 2026.</cite>

Transit advocates flagged a separate concern buried in the bill's structure. <cite index="13-7,13-8">Without advance appropriations, the CR cuts overall federal public transit investment by 20 percent from current FY 2026 funding levels, and passenger rail investment is cut 83 percent, receiving no guaranteed funding in the form of contract authority or advance appropriations.</cite>

The two chambers must now reconcile their competing versions before the fiscal year ends on Sept. 30. <cite index="21-5">The House returns Aug. 31 and is expected to consider the Senate version, given that it has support from the White House.</cite> <cite index="10-7,10-8">One complication for FY 2027 is the Senate's inability to put forward bipartisan spending proposals as it traditionally does; any final spending bill must clear 60 votes in the Senate, requiring some bipartisan support to become law.</cite>

<cite index="18-7,18-8">The House Appropriations Committee has passed all 12 individual spending bills, with three of the 12 also clearing the full House. The Senate Appropriations Committee has yet to agree on topline spending levels and has not passed any of its 12 spending bills.</cite>

A failure to act before Sept. 30 would trigger a government shutdown at the start of FY 2027, the third federal funding lapse since October 2025, according to tracking by the Committee for a Responsible Federal Budget.

Sources cited:
- National Association of Counties (https://www.naco.org/news/senate-passes-bill-fund-government-through-december-11-and-delay-omb-rule)
- Association of Educational Service Agencies (https://www.aesa.us/2026/08/13/fy2027-appropriations-update/)
- House Appropriations Committee (DeLauro statement) (https://democrats-appropriations.house.gov/news/press-releases/delauro-statement-senate-passage-continuing-resolution)
- ASCO Policy News (https://www.asco.org/news-initiatives/policy-news-analysis/senate-cr-blocks-omb-grantmaking-rule)
- Afterschool Alliance (https://afterschoolalliance.org/afterschoolsnack/FY27-Appropriations-update-Competing-Continuing-Resolutions_08-10-2026.cfm)
- Brownstein Hyatt Farber Schreck (https://www.bhfs.com/insight/cr-and-far-between-can-the-house-and-senate-find-a-funding-solution/)
- National Low Income Housing Coalition (https://nlihc.org/resource/senate-passes-funding-extension-through-december-11-and-adjourns-august-recess)
- APTA Passenger Transport (https://aptapassengertransport.com/senate-appropriations-committee-leaders-unveil-continuing-resolution/)
- Committee for a Responsible Federal Budget (https://www.crfb.org/blogs/appropriations-watch-fy-2027)
- The Conference Board (https://www.conference-board.org/research/policy-backgrounders/congress-moves-closer-to-avoiding-government-shutdown)