On Monday, August 5th, 2026, the U.S. Senate approved a continuing resolution to fund parts of the federal government through December 11th. The resolution includes a provision that temporarily blocks the Office of Management and Budget (OMB) from implementing a controversial rule proposed in May that would have given executive branch political appointees greater authority over the disbursement of federal grants.

The proposed OMB rule required "senior appointees" to review grant proposals for consistency with "applicable law, federal agency priorities, and the national interest," and mandated that agencies ensure funding proposals "advance the president's policy priorities." This rule drew significant public opposition, receiving over 62,123 public comments mostly against it.

Senators responded critically to the rule. Senator Susan Collins expressed she was "pleased" that the bill prevents the OMB from implementing the rule, which she said would "politicize grants" and "harm small, rural communities, families, and biomedical research." Senator Patty Murray described the rule as a "corrupt policy that would allow [President Donald] Trump to hold even more federal grants hostage."

Since the passage of the Impoundment Control Act in 1974, which allows presidents to withhold or defer appropriated funds for up to 45 days, Congress has spent approximately $127 trillion, according to the OMB. However, less than 1 percent of this spending has been rescinded by lawmakers, based on data from the Government Accountability Office (GAO).

Critics also point to the FY 2026 funding bill’s inclusion of $24 billion in earmarks, with $41.7 million allocated to "combat underwater pests." Senator Murray herself has 96 earmarks in the FY 2026 budget, totaling $484 million for her preferred projects, as noted by Citizens Against Government Waste.

The Senate’s move to block the OMB rule reflects ongoing tensions over federal spending control and the politicization of grant funding.

Sources