Senate Advances Continuing Resolution to Temporarily Delay Controversial Office of Management and Budget Grant Rule Changes

Dear Independent Living Community,

This message is to provide an update on the recent Notice of Proposed Rulemaking (NPRM) issued by the Office of Management and Budget (OMB), titled Federal Grant Rule Changes.

The National Council on Independent Living (NCIL) has been closely monitoring this critical regulatory development alongside its nationwide network of advocates, community leaders, and partner organizations. The proposed changes to federal grant rules carry profound implications for how independent living communities and similar federally supported programs operate, secure funding, and manage administrative compliance. Because these potential adjustments could introduce sweeping operational shifts, community members across the country have closely scrutinized the regulatory process from its earliest stages.

We want to thank everyone who took the time to draft comments and to raise concerns over this rule change to your congressional delegation. Your advocacy is making a difference! The collective voice of the independent living community has clearly resonated in Washington, demonstrating the power of grassroots civic engagement in shaping federal policy and protecting the vital services that individuals with disabilities rely on every single day.

Here is where we stand today regarding the legislative landscape and the path forward for the proposed rules.

On August 3, 2026, the Senate advanced legislation called a Continuing Resolution, which functions as a temporary budget that keeps programs running until a new budget is passed. Specifically, this proposed Continuing Resolution would keep the federal government funded at current funding levels through December 11, 2026. Beyond extending current appropriations, the Senate measure also includes a specific legislative provision that would explicitly delay the implementation of the proposed OMB Rules until that same date. The Senate is expected to pass this comprehensive funding legislation in the next few weeks as lawmakers work to avert potential government funding disruptions.

This recent Senate action follows previous legislative activity in the House of Representatives. The House of Representatives previously passed its own version of a Continuing Resolution on July 21. However, the House version did not include the specific legislative language delaying the implementation of the OMB grant rule change.

Because the two chambers of Congress have passed differing versions of the temporary funding legislation, the next phase of the legislative process requires the House and Representatives and the Senate to reconcile the differences between the two bills. Once a compromised text is agreed upon by both chambers, the unified legislation must then be formally signed by the president before it officially becomes law.

It is important for the independent living community to understand the exact scope and limitations of this legislative maneuver. If the final Continuing Resolution is ultimately passed with the language delaying the implementation of the rule, this legislation would simply provide a delay. It does not eliminate the rule change entirely or permanently discard the underlying Notice of Proposed Rulemaking issued by the Office of Management and Budget.

However, securing a temporary delay is a significant procedural development. It does provide vital time for potential litigation and other advocacy to take place. This extended window gives legal experts, advocacy organizations, and community stakeholders the necessary breathing room to evaluate potential legal challenges, engage in deeper discussions with federal policymakers, and mount further coordinated advocacy campaigns to address the problematic aspects of the proposed federal grant rule modifications.

NCIL is continuing to monitor this rule change very closely and is actively working with other partner organizations on additional advocacy opportunities to engage on this critical issue. The regulatory landscape surrounding federal grants is complex and fluid, and ensuring that the independent living network remains informed and prepared is a top priority for our leadership and advocacy teams. We will continue to keep the network updated as we have new updates to share in the coming weeks and months.

If you have any questions about these ongoing legislative developments, the details of the proposed OMB rules, or how your organization can continue to support these advocacy efforts, please contact NCIL Director of Advocacy and Public Policy Jessica Podesva at [email protected].

Very Sincerely,

NCIL Advocacy Team

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