Trump Threatens to Reject Senate Funding Deal Over Grant Authority Dispute

A potential bipartisan Senate deal to keep government funding running through December 4 could be rejected by President Donald Trump. The administration has warned that a proposed continuing resolution would strip it of authority to let political appointees decide whether to release grants approved by Congress.

Senate Republicans and Democrats are negotiating the continuing resolution, but a key sticking point involves a proposed Office of Management and Budget rule that would grant the Trump administration greater authority over federal grants.

Senator Susan Collins of Maine has been working with Democratic colleagues to include language blocking this rule, arguing it would undermine Congress’s constitutional power over federal spending.

Trump allies have warned that limiting the administration’s ability to prevent taxpayer money from flowing to organizations they view as promoting “woke” policies could prompt the president to oppose the funding measure.

Senate Majority Leader John Thune of South Dakota stated preventing another government shutdown remains the chamber’s top priority before lawmakers leave Washington for August recess.

“Next week our top priority will be funding the government until the November election,” Thune said on Thursday, warning that Americans have already endured two record-breaking government shutdowns in the past 10 months.

“The American people have faced two record-breaking government shutdowns in the past 10 months. We need to ensure they do not face a third,” he added, noting such events harm military personnel, law enforcement, federal workers, nutrition programs, farm assistance, and the broader economy.

Thune praised Collins for working to craft what he described as a “clean, bipartisan” continuing resolution and stated he intends to bring it to the Senate floor next week.

“I hope that will ensure a robust bipartisan vote next week so that Americans do not have to spend the next two months wondering if Congress is going to do its job,” he said. “Funding the government is our most basic responsibility as members of Congress.”

Democrats have insisted the resolution include language preventing the White House budget office from allowing political appointees to override career experts on grant decisions and from using so-called “pocket rescissions” to cancel spending without congressional approval.

Meanwhile, Trump allies argue the administration needs flexibility to ensure taxpayer dollars are not directed to organizations conflicting with presidential policy priorities.

GOP strategist Brian Darling told reporters that most Republicans outside the appropriations process support giving the Office of Management and Budget greater oversight to prevent grants from going to groups they consider politically or ideologically objectionable.

With Congress racing toward August recess, the dispute over federal grant authority has emerged as one of the final obstacles to a funding agreement both parties hope will avert another shutdown before the November elections.