Congress Prevents Government Shutdown and Delays OMB Rule

President Trump signed H.R. 6500, the Continuing Appropriations and Extensions Act, 2027, into law on September 2. The legislation continues funding for federal agencies and programs through December 11, 2026, largely at fiscal year 2026 levels. By extending funding beyond the September 30 deadline, Congress prevented a government shutdown and provided additional time to negotiate the remaining fiscal year 2027 appropriations bills. 

The continuing resolution also temporarily blocks the Office of Management and Budget from issuing, finalizing, or implementing its controversial proposed Regulation for Federal Financial Assistance through December 11. The proposal would rewrite the governmentwide Uniform Guidance governing how federal grants and cooperative agreements are awarded, administered, suspended, and terminated.  

Among its provisions, the OMB proposal would require senior agency political appointees to review discretionary grant awards before they are issued to ensure alignment with federal priorities and the national interest. It would also expand the circumstances under which agencies could terminate existing awards when projects no longer advance program goals, agency priorities, or the national interest. These changes could significantly affect universities, nonprofit organizations, researchers, and other recipients of federal science and engineering funding. 

For the research community, the delay preserves the current federal grant framework while Congress and OMB continue considering the proposal. Due to both protections being temporary, Congress must pass a full year appropriations or another continuing resolution before December 11 to avoid a funding lapse. Concurrently, further congressional action is required to delay the OMB rule going into effect after December 11 or permanently block the OMB rule. 

Read H.R. 6500 and the OMB proposed rule.