Peters, Schumer, Murray & Merkley Lead Senate Democrats in Demanding OMB Rescind Rule Giving President Sweeping Power to Politicize Federal Grants

Peters, Schumer, Murray & Merkley Lead Senate Democrats in Demanding OMB Rescind Rule Giving President Sweeping Power to Politicize Federal Grants

WASHINGTON, DC - U.S. Senators Gary Peters (D-MI), Ranking Member of the Homeland Security and Governmental Affairs Committee; Chuck Schumer (D-NY), Senate Democratic Leader; Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee; and Jeff Merkley (D-OR), Ranking Member of the Senate Budget Committee, led the entire Senate Democratic caucus in demanding Office of Management and Budget (OMB) Director Russell Vought immediately rescind OMB's proposed regulation on federal financial assistance. The Senators warned the proposal exceeds OMB's statutory authority, undermines Congress's constitutional power of the purse, and would allow the President to weaponize federal grants for political purposes.

"Your proposal exceeds OMB's authority, will make it impossible for grant recipients to faithfully carry out the funding priorities that Congress establishes in statute, and would turn federal grants into a new cudgel for the President to unilaterally advance his partisan agenda and punish political rivals," the Senators wrote. "Ultimately, these changes will make it harder for grant recipients to apply for and manage federal funds - undermining public safety, public health, economic competitiveness, and the government's ability to address rising costs."

The proposed rule would dramatically expand agencies' authority to terminate or suspend federal grants at any time and without notice. It would also require political appointees to make funding decisions without deferring to expert peer review. The Senators warn this would inject partisan politics into grantmaking, threaten America's leadership in scientific and medical innovation, and create chaos for communities and organizations that rely on federal funding to deliver critical services.

"Rather than focusing on fulfilling the statutory purposes of a grant program, applicants and recipients will be forced to play an endless guessing game, trying to determine which of their activities may or may not run afoul of OMB's ambiguous regulations or the president's whims," the Senators wrote.

The Senators also argue that OMB's proposal would force grant recipients to comply with vague, undefined, and political grant conditions that conflict with existing statutes. At the same time, it would weaken transparency and accountability requirements intended to safeguard taxpayer dollars. These changes could discourage qualified organizations from applying for federal grants and increase the risk of waste, fraud, and abuse.

The Senators concluded: "Article I of the Constitution vests the power of the purse in Congress, which Congress has historically exercised by appropriating taxpayer dollars through federal grants to fund critical programs, including to protect public safety, advance scientific research, and support health and nutrition initiatives. OMB's proposal unlawfully seeks to substitute Congress's role in directing federal spending with the President's preferred priorities, and in doing so, makes it harder for every community and organization in the United States to fairly access federal funding. We call on you to rescind this proposal."

Joining Senators Peters, Schumer, Murray, and Merkley in sending the letter were U.S. Senators Angela Alsobrooks (D-MD), Tammy Baldwin (D-WI), Michael Bennet (D-CO), Richard Blumenthal (D-CT), Lisa Blunt Rochester (D-DE), Cory Booker (D-NJ), Maria Cantwell (D-WA), Chris Coons (D-DE), Catherine Cortez Masto (D-NV), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Ruben Gallego (D-AZ), Kirsten Gillibrand (D-NY), Maggie Hassan (D-NH), Martin Heinrich (D-NM), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Tim Kaine (D-VA), Mark Kelly (D-AZ), Andy Kim (D-NJ), Angus King (I-ME), Amy Klobuchar (D-MN), Ben Ray Luján (D-NM), Ed Markey (D-MA), Chris Murphy (D-CT), Jon Ossoff (D-GA), Alex Padilla (D-CA), Jack Reed (D-RI), Jacky Rosen (D-NV), Bernie Sanders (I-VT), Brian Schatz (D-HI), Adam Schiff (D-CA), Jeanne Shaheen (D-NH), Elissa Slotkin (D-MI), Tina Smith (D-MN), Chris Van Hollen (D-MD), Mark Warner (D-VA), Raphael Warnock (D-GA), Elizabeth Warren (D-MA), Peter Welch (D-VT), Sheldon Whitehouse (D-RI), and Ron Wyden (D-OR).

Text of the letter is available here.

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