Washington, DC — Today, the Senate passed a continuing resolution (CR) to fund the federal government until December 11, 2026. Critically, the CR also would stop the implementation of an Office of Management and Budget (OMB) proposed rule that would dramatically re-write how federal grants are awarded and administered to states, cities, research institutions, non-profits, and other recipients of federal assistance, forcing them to align with Administration policies and interests. It would allow political appointees free reign to stop federal assistance grants mid cycle based on vaguely defined reasons such as “reputational harm.” The U.S. Conference of Mayors (USCM) was among the thousands of city leaders, researchers, congressional lawmakers and other organizations to submit letters during the public comment period urging the White House to withdraw its plan to assert more control over grants.
In response to the Senate taking action that would prohibit implementation of the rule for the period of the CR, USCM President Todd Gloria, Mayor of San Diego, issued the following statement:
“The Administration is trying to rewrite the rules for federal grants and give political appointees more power to cancel or delay funding for cities based on politics. Congress cannot let that happen. Today, the Senate took bipartisan action to temporarily stop this rule. Now the House must pass the Senate’s CR when it returns, and Congress must ultimately block this rule for good.
“Cities rely on federal grants to help provide housing, feed families, keep neighborhoods safe and deliver essential services. Putting that funding at risk creates uncertainty for local governments and real consequences for the people we serve. Cities should not have to wonder whether funding approved by Congress will be withheld because a political appointee disagrees with how it is being used.
“If Congress doesn’t act, federal funding for cities will be subject to new bureaucracy and burdensome reporting requirements. More concerning, political appointees would have greater power to exclude grant proposals simply because they do not align with their political opinions.
“Federal grants should be awarded based on the law, Congressional intent and the merits of an application — not politics. Congress must protect the independence and integrity of the federal grantmaking process and ensure cities can continue delivering the services our residents depend on.”