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Congress Can Rein In OMB’s Harmful Overhaul of Federal Funding
On May 29, the Office of Management and Budget (OMB) proposed a sweeping new rule (OMB-2026-0034) that would impact all entities currently receiving federal funding as well as future agreements, including for nonprofits, universities, cities, state agencies, Tribes, and even individual farmers and ranchers. This proposal could allow federal agencies, including USDA, to withhold, suspend, or terminate grants and contracts without any notice or cause. It would also allow agencies to change terms and conditions mid-performance, which can lead to unpredictable financial and legal risks. 

Farmers and ranchers, their customers, and the organizations that support them have had enough chaos -- and this rule change could make it much worse. The federal government should not levy unreasonable burdens and risks on Americans who are carrying out federal programs and missions. 

As OMB considers the public comments it received on this proposal (over 400,000!), there is time for Congress to act. 

Congress recently passed a Continuing Resolution (CR) to fund the government through December 11, and included a delay to keep the OMB rule from going into effect until then. This is great news. We are grateful that Congress saw the urgency of this issue. Now, we want federal legislators to commit to a more sustained solution in the coming months -- they must exercise the necessary oversight to make sure that the program funds Congress has passed actually reach constituents without this draconian rule. 

Please take the time to share your concerns about the impact of this rule with legislators, and to thank them for taking steps to halt the immediate harm.  

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