Spending Measure Pauses OMB Grantmaking Rule Until Mid-December
A continuing resolution signed by President Donald Trump on Sept. 3 keeps federal agencies funded through Dec. 11 and prevents a shutdown. The measure also stops the Office of Management and Budget from finalizing or carrying out a proposed grantmaking rule before that date. The rule, which had been scheduled to start Oct. 1, would give political appointees and agencies greater authority to award or end grants.
The stopgap measure, H.R. 6500, funds agencies through Dec. 11 and was signed Sept. 3. It moved through Congress in stages: House passage Jan. 12, Senate amendment Aug. 8, and final House approval Sept. 1. A Senate-added provision bars OMB from finalizing or enforcing the grant rule, or a substantially similar one, before the funding lapse.
OMB's proposed "Regulation for Federal Financial Assistance" appeared May 29 and drew over 160,000 comments. It would revise the Uniform Guidance, first issued in 2013, and was joined by 41 grantmaking agencies. Scheduled for Oct. 1, it would make the guidance binding, expand appointed officials' role, limit fixed-amount awards, and broaden termination authority.
The delay may give grant recipients, researchers, state and local governments, and federal agencies temporary certainty while leaving longer-term rules unresolved. If the proposal later takes effect, greater appointee discretion could change how awards are reviewed, selected, or terminated, potentially affecting funding continuity and which projects receive support. Agencies and applicants may face planning challenges either way as the Dec. 11 deadline approaches.