Trump Threatens to Reject Senate Funding Deal Over Grant Authority

By Charlie McCarthy | Friday, 31 July 2026 10:52 AM EDT

A potential bipartisan Senate deal to keep the government funded and prevent a federal shutdown faces imminent rejection by President Donald Trump. The administration claims such a funding measure would strip it of proposed authority to let political appointees decide whether to release grants appropriated by Congress.

Senate Republicans and Democrats are negotiating a continuing resolution to fund the government through December 4, but one of the biggest sticking points is a proposed Office of Management and Budget rule that would grant Trump administration political appointees greater authority over federal grants.

Republican appropriators led by Senator Susan Collins of Maine are working with Democrats to include language blocking the rule, arguing it would undermine Congress’ constitutional power over federal spending.

Trump allies warn 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 shutdown remains the chamber’s top priority before lawmakers leave Washington for the August recess.

“Next week our top priority will be funding the government until the November election,” Thune said on the Senate floor Thursday, warning that Americans have already endured two 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 shutdowns 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 said he intends to bring it to the Senate floor next week.

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

Democrats insist the continuing resolution must 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 that conflict with the president’s policy priorities.

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

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