WASHINGTON, D.C. — U.S. Senator Alex Padilla (D-Calif.) joined Leader Chuck Schumer (D-N.Y.), U.S. Senators Gary Peters (D-Mich.), Patty Murray (D-Wash.), and Jeff Merkley (D-Ore.), and 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’ constitutional power of the purse, and would give the President sweeping new authority 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,” wrote the Senators. “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.
“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,” wrote the Senators.
The Senators also argued that OMB’s proposal would force grant recipients to comply with vague, undefined terms that conflict with existing statutes. It would simultaneously 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.
“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,” concluded the Senators. “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.”
In addition to Padilla, Schumer, Peters, Murray, and Merkley, the letter was signed by U.S. Senators Angela Alsobrooks (D-Md.), Tammy Baldwin (D-Wis.), Michael Bennet (D-Colo.), Richard Blumenthal (D-Conn.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Maria Cantwell (D-Wash.), Chris Coons (D-Del.), Catherine Cortez Masto (D-Nev.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), John Fetterman (D-Penn.), Ruben Gallego (D-Ariz.), Kirsten Gillibrand (D-N.Y.), Maggie Hassan (D-N.H.), Martin Heinrich (D-N.M.), John Hickenlooper (D-Colo.), Mazie Hirono (D-Hawaii), Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Andy Kim (D-N.J.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), Ben Ray Luján (D-N.M.), Ed Markey (D-Mass.), Chris Murphy (D-Conn.), Jon Ossoff (D-Ga.), Jack Reed (D-R.I.), Jacky Rosen (D-Nev.), Bernie Sanders (I-Vt.), Brian Schatz (D-Hawaii), Adam Schiff (D-Calif.), Jeanne Shaheen (D-N.H.), Elissa Slotkin (D-Mich.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Mark Warner (D-Va.), Raphael Warnock (D-Ga.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.), and Ron Wyden (D-Ore.).
Padilla pressed OMB Deputy Director nominee Hal Duncan on this proposed rule during his confirmation hearing in front of the Senate Budget Committee on June 16, 2026. He raised concerns about the far-reaching impacts of this overhaul to the federal grants process echoed in this letter and about the motivations behind the rulemaking, suggesting it was intended to provide cover for the Trump Administration’s illegal withholding and cancellation of thousands of federal grants. He asked Duncan for a commitment that OMB would not use this or any future change to the Uniform Guidance to circumvent congressional spending decisions, which the nominee refused to provide. Padilla also submitted several questions for the record asking about the legal authority OMB is relying on to override congressional authorization, the impact on multi-year funding projects, OMB’s process for meaningfully considering public comments, the bypassing of statutorily required expert review, and more.
The full letter is available here.
Video of Padilla’s remarks is available here.