ADVOCACY & POLICY UPDATE - June 1, 2026

OMB Proposes Major Grant Overhaul; FY27 Appropriations Work Moves Forward

Washington Update​

Appropriations

House Appropriations Chair Tom Cole (OK) said he plans to release the full slate of FY27 bill totals by the end of this week, including toplines for notoriously contentious bills like Homeland Security, Labor-HHS-Education, and Defense. 

In the Senate, the Appropriations Committee is scheduled to begin consideration of the FY27 funding bills this week, with markups of the Agriculture-FDA, Legislative Branch, and Commerce-Justice-Science bills set for Tuesday, June 2. 

Meanwhile, House Republicans have advanced most of their own FY27 appropriations bills through committee and passed the Military Construction-Vererans Affairs measure on the House floor. However, a bipartisan, bicameral agreement on final spending levels is unlikely before midterm elections. As a result, Congress is widely expected to pass a continuing resolution (CR) to keep the federal government funded beyond the September 30 deadline while negotiations on final FY27 spending levels continue.

OMB Proposed Rule

On Thursday, May 28, the Office of Management and Budget (OMB) released a proposed rule that would significantly revise the federal grantmaking process governing more than $1 trillion in annual federal assistance. The proposal, which specifically builds on the previous Executive Order “Improving Oversight of Federal Grantmaking,” would provide federal agencies with broader authority to terminate grant awards that no longer align with agency priorities, program goals, or the national interest. It would also establish new government-wide requirements related to grant eligibility, oversight, foreign affiliations, free speech protections, immigration verification, and the use of federal funds for certain activities. The rule would increase the role of political appointees in reviewing grant awards and is intended to standardize grant regulations across federal agencies. 

OMB has opened a 45-day public comment period and is targeting October 1 for implementation, which would determine the requirements applicable to FY27 grant awards.

Matt Hanson, Managing Director, Grants and Policy at Witt O’Brien’s (a leading risk management and emergency response partner for governments and corporations) will be strategizing with mayors at our upcoming U.S. Conference of Mayors Annual Meeting in Long Beach on amendments to a regulatory resolution before the USCM Metro Economies Committee to develop policy for addressing the implications of the OMB rule. Formal comment and/or a legal strategy is to follow. Matt Hanson will be speaking at the Friday, June 5, 8:00 a.m. breakout session “Managing Federal Grants.” The rule has a comment period that ends in 42 days (7/13/2026).

Click here to access the proposed rule and view comment instructions.

H-2A Visas

On Tuesday, May 26, House Agriculture Committee Chair G.T. Thompson (PA) released draft legislation to expand and revise the H-2A agricultural guest worker program. The legislation would broaden eligibility by allowing jobs lasting fewer than 350 days to qualify as “temporary,” including year-round operations such as dairy farms. The bill would also adjust wage calculations for entry-level H-2A positions, limit annual wage fluctuations, waive interview requirements for returning workers, create a public online recruitment registry, and transfer petition approval authority to the Department of Homeland Security. Agriculture industry groups have long pushed for changes to address ongoing labor shortages and expand access to foreign agricultural workers.

Click here to access the draft bill.

House Education and Workforce Subcommittee Hearing

On Wednesday, June 3, at 10:15 a.m. (ET) the House Education and Workforce Subcommittee on Higher Education and Workforce Development will hold its seventh hearing in a series examining artificial intelligence “Building an AI-Ready America: Higher Education in the Age of AI.”

Click here to learn more about the hearing.