Article
Where the spending bills stand
The Senate on Aug. 8 passed its continuing resolution 90-6, funding the government through Dec. 11. The House passed a different version on July 21, by 220-205, that runs through Dec. 4, so the chambers still need to settle on one bill. Neither version extends expiring health care provisions, which do not lapse until the end of December.
The Senate bill carries a provision of direct interest to hospitals that receive federal grants. It would bar the Office of Management and Budget from finalizing its proposed revisions to the federal financial assistance rules, and would block any similar measure from being issued or finalized before Dec. 11.
What the grants proposal would do
OMB and other agencies proposed changes to the Uniform Grants Regulation that would give agencies wider latitude to change award conditions, add requirements while an award is active, and suspend or end funding based on shifting priorities or national interest determinations, unless a law specifically governs how the funds are used.
In comments filed July 13, the American Hospital Association warned that this uncertainty could make hospitals reluctant to commit to multiyear work such as clinical studies, residency expansion and behavioral health programs. It said boards could find it harder to commit matching funds or related capital, grantees might need to go to court for clarity, and some hospitals might stop applying for competitive grants altogether. The AHA and four other hospital groups asked OMB not to adopt the changes.
Why this is a governance issue
The Senate provision is a pause, not a resolution. If it survives negotiations with the House, it protects hospitals only until Dec. 11. Boards that approve grant-funded programs should understand how much of the organization’s mission work depends on federal awards and what would happen if those awards changed after the work began.
Questions for leadership and the board
- Which programs, positions and research projects rely on federal grants, and for how much?
- Which commitments, such as matching funds, hiring or construction, would be stranded if an award ended early?
- Do new grant applications include contingency plans for midstream changes in conditions?
- Is the organization weighing grant risk explicitly when deciding whether to apply?
Leaders should also watch whether the final stopgap keeps the Senate’s grant language and whether Congress extends the health provisions that expire at year-end.
Archive entry for Aug 9, 2026, added Nov. 11, 2026.