Senate Funding Deal Entwined with Fight Over OMB Grant Rule

Senate Republicans and Democrats are close to a continuing resolution (CR) that would fund the federal government through early December. The same negotiations are being used to address a proposed Office of Management and Budget (OMB) rule that would let White House political appointees approve or terminate grants, a change Senate leaders say could undermine Congress’s constitutional power of the purse. Democrats argue the rule would allow the administration to block “woke” organizations, while some Republicans fear it could harm small-rural communities and scientific research.

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• John Thune (R-S.D.) – Senate Majority Leader, pushing for a CR vote before the Senate’s August recess.

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• Susan Collins (R-Maine) – Appropriations Committee chair, leading Republican opposition to the OMB rule and warning it is “deeply flawed.”

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• Patty Murray (D-Wash.) – Vice chair of the Senate Appropriations Committee, seeking language in the CR to block the rule.

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• Lisa Murkowski (R-Alaska) – Criticizes the rule as a “political-connection” grant system and is drafting a letter on behalf of tribal groups.

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• Brian Darling – GOP strategist who cautions that adding anti-rule language could jeopardize passage of the CR.

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• Earlier this month, Collins sent a letter to OMB director Russ Vought demanding withdrawal of the rule.

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• Shortly after, Murray, Peters, Merkley and Schumer sent a joint letter to Vought urging rescission of the proposal.

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• Senate leaders indicated they hope to file the CR and hold a vote next week, before the chamber departs for a five-week August recess.

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• Democrats have signaled readiness to fund the government into December if the CR includes language restricting the OMB rule.

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If enacted, the OMB rule could let political appointees terminate any grant or cooperative agreement at any time, potentially disrupting clinical trials and disincentivizing scientific researchers. Collins warned it would “harm small and rural communities.” Murkowski highlighted the lack of consultation with tribal organizations. Democrats also seek to curb “pocket rescissions,” noting the administration’s prior attempt to cancel $4.9 billion in foreign-aid programs less than 45 days before the fiscal year’s end.

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• “There are handful of issues that are still under consideration with the CR, but we filed on it today, we’re setting it up, we’re hoping to vote next week,” — Majority Leader John Thune

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• “I certainly think that the rule is deeply flawed. I wrote the first letter from a senator to the OMB to express my opposition,” — Susan Collins, appropriations committee chair

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• “We’re talking about a resolution to that,” — Sen. Patty Murray

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• “When you start issuing grants based on political connections. That’s not a good system here,” — Republican Sen. Lisa Murkowski

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• “I think the White House would push back pretty hard if this provision was added to the CR. The CR is already going to be very tough to get across the finish line. If some Republicans are teaming up with Democrats to put language in that bill that creates a problem, I think it’s going to hurt the prospects of getting a CR across the finish line,” — Brian Darling, a GOP strategist and former Senate aide

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