Federal Policy
Congress Blocks OMB Grant Rule Through Dec. 11, Averting Federal Shutdown
Congress passed a continuing resolution Sept. 1 funding the government through Dec. 11 and temporarily blocking an OMB proposal to revise federal grant regulations. The proposal would give agencies broader authority to modify, suspend, or terminate grant awards based on evolving priorities, raising concerns from the American Hospital Association about funding predictability for multiyear investments in workforce, research, and infrastructure. The AHA has sought clarity on whether the rule would affect Medicare rural programs, CMMI arrangements, supplemental Medicaid payments, and Medicaid managed care capitation. The temporary block expires Dec. 11, leaving hospitals facing renewed uncertainty unless OMB withdraws or revises the proposal.
Why it mattersMedicaid-dependent hospitals and managed care organizations face unresolved questions about whether capitation payments, supplemental payments, and CMMI arrangements could fall under grant modification authority that would allow mid-award funding changes without appeals.