Negotiators are weighing limits on the White House budget office’s grant rulemaking, a dispute that could determine whether lawmakers avert a shutdown before the August recess.
Senate Republicans and Democrats are close to a stopgap funding agreement that would keep the government open through Dec. 4, but the talks are tied to a fight over a proposed Office of Management and Budget (OMB, White House budget office) rule that would give Trump appointees greater control over withholding congressionally approved grants. Senate Majority Leader John Thune said the continuing resolution has been filed and could come up for a vote next week before the chamber leaves for a five-week August recess. A bloc of Republicans, led by Senate Appropriations Committee Chair Susan Collins, wants to use the measure to curb or halt the OMB proposal, arguing it would weaken Congress’s power over spending. Democrats including Sen. Patty Murray are negotiating with Collins and other Republicans on language to restrict the rule, and Murray indicated Democrats would support funding the government into December if that provision is included. Several Democrats said they want the stopgap enacted before recess to remove the threat of a fall shutdown. The dispute carries political risk because Trump allies say language targeting the OMB rule could jeopardize passage of the continuing resolution. Brian Darling, a GOP strategist and former Senate aide, said the White House would likely resist such a provision and predicted MAGA-aligned Republicans would back OMB authority to block grants for organizations the administration views as out of step with its policy goals. Democrats have also pushed to bar the administration from using pocket rescissions (late-term requests to cancel spending), after the administration sought in late August of 2025 to cancel $4.9 billion in foreign aid less than 45 days before the fiscal year ended.