Claire Kartoz
Claire Kartoz serves as a Managing Director of Grants & Federal Affairs, serving clients in the Nonprofit practice. Leveraging her experience with project and team management, Claire works with nonprofits to identify and pursue federal and foundation funding opportunities. She also provides analysis of Federal legislation and government relations support for nonprofit clients.
In a significant development for federal grant recipients, the Senate has voted to delay implementation of the Administration's proposed changes to federal grantmaking rules.
On August 8, 2026, the Senate passed a Continuing Resolution (CR) to fund federal agencies through December 11. In addition to extending federal funding, the bill would block the White House from implementing proposed changes to federal grantmaking rules while the continuing resolution remains in effect.
The Office of Management and Budget (OMB) published the proposed rule in late May to make substantial changes to the federal grantmaking guidance known as the Uniform Guidance. The proposal would expand federal agencies’ discretion to suspend or terminate grant awards that no longer align with Administration goals, agency priorities, or national interests.
The rule would also make other changes to the grantmaking process, including additional compliance requirements for recipients and subrecipients, senior appointee review of discretionary awards, expanded use of Grants.gov postings with more standardized notice formats, encouragement of multi-year awards, and new workforce screening requirements.
The proposal generated significant attention from the nonprofit, education, healthcare, and local government sectors. By the July public comment deadline, OMB had received nearly 500,000 comments.
Leaders of the Senate Appropriations Committee, including Chair Susan Collins (R-ME) and Senator Lisa Murkowski (R-AK), have publicly opposed the proposed rule and supported the provision included in the Senate’s bill to delay its implementation.
The Senate measure passed with broad bipartisan support in a 90-6 vote. However, its future remains uncertain. The House version of the Continuing Resolution does not include language blocking the OMB rule, meaning the two chambers will need to negotiate a final agreement before legislation can be signed into law.
HHS Secretary Robert F. Kennedy Jr. and Senator John Kennedy (R-LA) have both indicated that OMB and the White House do not expect the rule to be finalized by December 11, despite an initial target effective date of October 1, 2026. That revised timeline could make the Senate provision more acceptable to House Republicans during upcoming negotiations.
Proposed Grant Changes And the Affect on Federal Funding Recipients
While the proposed rule is not expected to take effect immediately, the debate over federal grantmaking policy is far from settled. Organizations that rely on federal funding should continue to monitor developments in Congress and at OMB, as the outcome could affect future grant administration and compliance requirements.
Organizations concerned about the proposed changes may also wish to share their perspectives with their U.S. Representatives and Senators as lawmakers consider next steps.
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