Last week, the Senate passed a continuing resolution (CR) funding the government through December 11 and, in the process, hit pause on the Office of Management and Budget’s contested rewrite of federal grantmaking rules. 

The CR would bar OMB from finalizing its overhaul of regulations governing how every federal grant is administered until December 11. Without the provision, the rule was on track to take effect October 1. The Senate language also closes a loophole that could have let OMB finalize the rule just before the CR took effect. 

Why does this matter to nonprofits? 

The main concern with the OMB proposal is that it would give political appointees final say over what gets funded, plus the power to terminate active awards that don’t align with administration priorities mid-cycle. It drew nearly 500,000 public comments during the open comment period, including a letter DANA sent that was co-signed by 35 Delaware nonprofits urging several revisions to the rule. 

Senate Appropriations Chair Susan Collins wants OMB to withdraw parts of the proposed rule, while Senate Democrats want it rescinded outright. 

That’s where the bill stands. The House passed its own stopgap on July 21, funding the government only through December 4 with no OMB language, and Republicans have twice rejected amendments targeting the rule. The chamber returns August 31, leaving roughly a month before government funding lapses. If the House adopts the Senate bill intact with the OMB rule pause, it goes to the president. Any change sends it back to the Senate. 

For nonprofits that receive federal funds, the reprieve would be real but temporary, expiring the same day the funding does. DANA will continue monitoring the situation and will provide updates as events play out.