Washington, DC—Today, the U.S. House of Representatives passed a continuing resolution (CR) to fund the federal government through December 11, 2026. Critically, the measure also would block implementation of a proposed Office of Management and Budget (OMB) rule that would significantly reshape how federal grants are awarded and administered to states, cities, research institutions, nonprofits, and other recipients of federal assistance. The proposed rule would require recipients to align their grant activities with Administration policies and priorities and could give political appointees broad authority to terminate federal assistance mid-cycle based on vaguely defined grounds, including claims of “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 House 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:
“Mayors across the country welcome Congress’ passage of a continuing resolution that keeps the federal government open and, critically, delays implementation of the Office of Management and Budget’s proposed rule governing federal grants.
“This pause is important and necessary to all who want taxpayer funds invested efficiently and effectively. The proposed OMB rule would give political appointees sweeping new authority to delay, condition, or terminate federal grants that cities rely on to build housing, keep neighborhoods safe, invest in infrastructure, support families, and deliver essential services. Federal funding decisions should be guided by law, congressional intent, and the merits of an application — not political considerations.
“We thank bipartisan leaders in Congress for recognizing the serious concerns raised by mayors and other state and local leaders and for preventing this rule from taking effect while these issues remain unresolved.
“At the same time, a continuing resolution is only a temporary solution. America’s cities need the certainty that comes with full-year appropriations. Mayors are ready to work with Congress to finish the job, protect the integrity of federal grantmaking, and provide cities with the resources they need to keep moving their communities forward.”