Earlier this summer we shared about proposed changes at the Office of Management and Budget (OMB) that could cause disruption for nonprofits and other entities that enter into contracts with the federal government.

A reminder of what’s at stake according to the National Council of Nonprofits:

• Federal agencies could gain broad authority to suspend grants for up to 90 days while considering termination.

• Federal agencies could end grants because agency priorities or interpretations of the “national interest” have changed.

• New conditions could be added to grants after they have been awarded.

• Federal agencies could expand political review throughout the grantmaking process.

Reliable contracts are essential to the basic functioning of any business. The nonprofits, local governments, tribes, schools, and public agencies that contract with the federal government rely on these contracts to be predictable so they can deliver the essential services our communities need.

What has changed:

The next few weeks will be critical. The Office of Management and Budget (OMB) is expected to publish its Final Rule by Sept. 1, with an effective date of Oct. 1.

At the same time, Congress is working to prevent a government shutdown before current federal funding expires on Sept. 30. Both the House and Senate have introduced continuing resolutions to extend government funding into December, but the proposals differ. Notably, the Senate’s proposal would delay implementation of the OMB’s Final Rule until Dec. 11.

Congress must reconcile the differences between the two funding bills before sending a final measure to the President for signature. Until then, the timeline for implementing the OMB rule remains uncertain.

What you can do now:

The August recess is a great time for advocacy with members of the House and Senate:

• Senate Members: Thank them for including the OMB delay language in the Senate funding bill and urge them to keep this language in the continuing resolution.

• House Members: Ask them to adopt the Senate’s funding bill language that would delay the implementation of any OMB changes.

• Both Chambers: Senators and Representatives all need to hear how these proposed changes would impact nonprofits like EFN and our community. Ask them to block proposed changes to the OMB.

The funding proposal from the Senate provides an important delay, but it does not address the overall threat to agencies entering contracts in the federal government. Our communities deserve grant contracts that are transparent and reliable so that agencies can provide the consistent and reliable services we all rely on.