The stopgap measure, negotiated by Senate Appropriations Committee Chair Susan Collins (R-Maine) and ranking member Patty Murray (D-Wash.), includes a temporary block on a Trump administration rule that would allow the Office of Management and Budget to cancel federal grants based on a recipient’s political alignment. While Democrats celebrated the provision as a win, Republicans dismissed it as symbolic, foreshadowing a clash when full-year funding negotiations begin.
The OMB Grant Rule Dispute
At the center of the funding deal is a proposed OMB rule that would require political alignment for federal grant approval and allow at-will cancellation. Murray argued that the provision in the continuing resolution is critical because the rule was set to take effect on Oct. 3. She warned that without the block, the administration would have a “greenlight to take even more federal funding hostage.”
However, Sen. John Kennedy (R-La.) told reporters that he spoke with OMB Director Russell Vought on Monday morning and received assurances that the rule would not go into effect until after Dec. 11 regardless. Kennedy argued that Senate Minority Leader Chuck Schumer did not secure as much as he claimed. “I think he’s going to go back to his base and say I got the OMB rule. Well, he didn’t,” Kennedy said.
Murray rejected that characterization, insisting the temporary block has real teeth and pledging to “fight like hell” to make it permanent. The dispute underscores a broader tension over executive power and Congress’s authority over the power of the purse, an issue that Collins has championed throughout her tenure. Collins, who is facing a tough reelection race this fall, called the OMB rule “deeply flawed” and confirmed that the Senate forced the temporary ban into the bill over the administration’s objections.
What Was Left Out
Beyond the OMB rule, Democrats pointed to several smaller rebukes of the Trump administration embedded in what the continuing resolution omits. The White House had requested $1 billion for the construction of “Trump-class” battleships, a defense priority that was excluded from the stopgap. Murray also noted that the bill prevents the administration from redirecting appropriated funds toward immigration enforcement.
Sen. Jacky Rosen (D-Nev.), who voted against a shutdown-avoiding continuing resolution in March 2025, backed this measure specifically because of the OMB grant restrictions. Rosen argued that the provision stops the administration from penalizing states that did not vote for President Trump. “They have to stop doing that,” Rosen said.
The few dissenters in Monday’s vote reflected the persistent ideological fringes that oppose continuing resolutions on principle. Sens. Bernie Sanders (I-Vt.), Tim Kaine (D-Va.), and Elizabeth Warren (D-Mass.) voted no, alongside Sen. Rand Paul (R-Ky.), who routinely opposes stopgap measures.
What Happens Next
The Senate aims to send the continuing resolution to the House before lawmakers leave for a monthlong recess at the end of the week. The early passage is a political calculation for both parties, allowing incumbents in tough races to avoid a shutdown standoff just weeks before a crucial election. But the bipartisan truce is fragile.
The real fight will begin after the elections, when Murray and Collins must negotiate a top-line spending figure for fiscal year 2027. Murray is pushing for renewed infrastructure funding to counterbalance Republican demands for increased defense spending, while Collins has dismissed Democratic proposals as unreasonable so far. Murray acknowledged that reaching a defense and non-defense top line that both parties can accept will be the most difficult hurdle to clearing full-year appropriations bills.
The OMB grant rule will likely remain a flashpoint. If Vought moves to implement the rule after Dec. 11, Democrats will face pressure to force a permanent ban in the final spending package, potentially triggering the kind of shutdown showdown that both parties spent Monday trying to avoid.
— Omar Hassan, politics desk, AXO News