The Senate Appropriation Committee, vice chaired by Sen. Patty Murray, D-Wash (L)., and chaired by Sen. Susan Collins, R-Maine (R), has drafted text for a continuing resolution that would pause implementation of the new OMB rule until at least December 11. (Bill Clark/CQ-Roll Call, Inc via Getty Images)
CQ-Roll Call, Inc via Getty Images
The potential implementation of the new Trump OMB rule is uncertain for now, as it appears it may be delayed until December 11. This is based on the Senate’s release of a Continuing Resolution on Sunday, aimed at preventing another government shutdown. The resolution includes a provision to delay the enforcement of the White House Office of Management and Budget’s “Regulation for Federal Financial Assistance,” initially planned for October 1. This new rule would significantly increase President Donald Trump’s control over federal funding, as previously discussed in Forbes.
The Continuing Resolution Will Delay But Not Eliminate The New OMB Rule
The Continuing Resolution proposes to maintain funding for all federal agencies at current levels, with some exceptions, through December 11, coincidentally National Stretching Day. Continuing Resolutions are used to keep the government operational when Congress cannot finalize a permanent budget, a frequent occurrence recently. There have been six shutdowns under Trump, second only to Ronald Reagan’s eight. Senate Appropriations Vice-Chair Patty Murray (D-Washington), Senate Appropriations Chair Susan Collins (R-Maine), and Senator Lisa Murkowski (R-Alaska), along with other Senate Democrats, advocated for the delay of the new OMB rule’s implementation within the Continuing Resolution.
While the Senate could have chosen to terminate the new OMB rule entirely, there was insufficient support for such a measure. If the current Senate version of the Continuing Resolution is approved by Congress, it will postpone the decision on the OMB rule until after the midterm elections, which may be perceived as a setback for OMB Director Russ Vought and Trump.
The New OMB Rule Would Grant Trump Extensive Power Over Federal Funding
The new OMB rule proposes a significant revision of 2 CFR Part 200, granting the U.S. President, currently Trump, and his appointees extensive control over the $1.1 trillion federal funding distributed annually. This includes the power to revoke federal contracts or grants with minimal justification, as long as they do not align with Trump’s policies or interests. His past actions against institutions like Harvard suggest he may use this authority to enforce his agenda.
This rule has generated opposition from various sectors, including 57 patient advocacy organizations, as previously detailed in Forbes. Additionally, over 290,000 comments were submitted during the brief 45-day public comment period from May 29 to July 13. Delaying the rule’s implementation until at least December 11 provides more time for thorough consideration of its implications.
The Senate And Then The House Must Decide On The New OMB Rule
It’s important to note that the Senate has not yet finalized its version of the Continuing Resolution. The Senate will conduct an initial procedural vote on this resolution on Monday night.
The Senate aims to pass the resolution by the end of the week before their five-week recess, beginning next week. If not resolved by then, the matter will remain unaddressed until September.
If the Senate approves this version of the Continuing Resolution before recess, the responsibility will shift to the House in September. The House will need to decide on the Continuing Resolution and the new OMB rule.
The government fiscal year concludes on September 30, leaving the House with limited time to debate and act. Without a new budget or Continuing Resolution by October 1, another government shutdown would occur. Updates will be provided as new information becomes available from federal contacts.
Could The OMB Rule Become A Significant Midterm Election Issue?
Many Congress members are focused on the upcoming midterm elections in early November, which will determine control of the Senate and House. For those with strong opinions on the new OMB rule, now is the time to express them to political representatives. Remaining silent on the issue may result in consequences without having had a say.
