Senate Democrats unite against OMB grant rule; military promotions inquiry launched

The full Senate Democratic caucus, joined by New Mexico's two senators and colleagues from across the country, sent a letter Tuesday demanding OMB Director Russell Vought immediately rescind the agency's proposed "Regulation for Federal Financial Assistance," published in the Federal Register on May 29, 2026. The senators warned it would dramatically expand agencies' authority to terminate or suspend federal grants at any time and without notice, and require political appointees to make funding decisions without deferring to expert peer review.

"Article I of the Constitution vests the power of the purse in Congress, which Congress has historically exercised by appropriating taxpayer dollars through federal grants to fund critical programs, including to protect public safety, advance scientific research, and support health and nutrition initiatives. OMB's proposal unlawfully seeks to substitute Congress's role in directing federal spending with the President's preferred priorities, and in doing so, makes it harder for every community and organization in the United States to fairly access federal funding. We call on you to rescind this proposal," the senators wrote.

Murray and Rep. Marcy Kaptur, D-Ohio, filed a separate letter focused specifically on Department of Energy grants, warning the rule would "freeze critical energy and water investments needed to lower everyday costs for Americans." They cited a Moody's warning that the proposed rule would be "credit negative for entities with high dependence on competitive federal funding because it would materially weaken the reliability of multi-year discretionary funding commitments."

Sen. Mark R. Warner, D-Va., and Sen. John Hickenlooper, D-Colo., led a third action — a public comment signed by nine Senate colleagues — framing the rule as a threat to U.S. scientific competitiveness. "The proposed changes solidify federal grant-making as an unprecedented partisan power-grab that eliminates transparency of how taxpayer dollars are spent. This rule would derail American innovation and competitiveness at the local and national levels, kill good-paying American jobs, drive up costs for families, and halt essential projects in local communities," those senators wrote.

Sen. Jon Ossoff, D-Ga., led seven Senate colleagues Tuesday in launching a formal inquiry with Defense Secretary Pete Hegseth over reports that he personally blocked eight Navy captains from promotion to one-star admiral, reportedly including two female officers and two Black officers.

"We write concerning reports of your unprecedented decision to personally remove qualified Officers from consideration for promotion to Brigadier General, Major General and Flag Officer. These actions raise concerns regarding the criteria, process, and authorities utilized to make changes to promotion recommendations after completion of the highly regulated military promotion board process," Ossoff and the group wrote to Hegseth.

The senators also raised concerns about command culture: "While there are valid reasons to remove Officers from consideration for promotion for reasons that often involve sensitive or adverse information; public reports indicate your actions may be politically motivated, disregards the many achievements of these Officers, and shirks the idea of an apolitical military. Additionally, there are reports that your decisions are affecting morale among all ranks of Officers."

Joining Ossoff were Sens. Richard Blumenthal, D-Conn., Elissa Slotkin, D-Mich., Kirsten Gillibrand, D-N.Y., Richard Durbin, D-Ill., Cory Booker, D-N.J., and Jeffrey Merkley, D-Ore. It is at least the third Ossoff-led inquiry directed at Hegseth since February, following previous letters on xAI's Grok operating inside DoD networks and the mass detention of migrants at Guantanamo Bay.

Sens. Adam Schiff and Alex Padilla, both D-Calif., announced $53.8 million in DOT BUILD grant awards Tuesday for four road and highway projects in Amador, Kern, and Riverside counties. The senators credited the Infrastructure Investment and Jobs Act of 2021 for making the funding possible.

"These grants will fund critical projects that help construct and improve bridges, roadways, off-ramps, bikeways, pedestrian crossings and other transportation infrastructure," said Schiff. "This federal investment will also support local economic growth and construction jobs."

In Missouri, Sen. Eric Schmitt, R-Mo., highlighted $61 million in DOT 2026 BUILD Awards for five state transportation projects, ranging from a $1.2 million connector in Butler County to a $23.5 million highway widening in Greene County. "Instead of funding fraud and illegal scams, Missourians' tax dollars are actually being reinvested into their own state and communities," Schmitt said, crediting the Trump administration for the awards.

Sens. Mark R. Warner and Tim Kaine, both D-Va., announced $5,819,548 in FAA Airport Improvement Program grants Tuesday for nine local and regional Virginia airports. The largest single award — $2.9 million — goes to Virginia Tech/Montgomery Regional Airport Authority for taxiway and apron rehabilitation.

"From connecting families to supporting businesses and tourism, Virginia's airports are critical to communities across the Commonwealth," the senators said. "We're proud to announce this funding that will improve safety, modernize infrastructure, and ensure these airports can continue serving travelers, businesses, and local economies for years to come."

The announcement is the latest in a series: Warner and Kaine announced more than $32 million for eight Virginia airports last week, and more than $73 million for three airports in May.

Sen. James Lankford, R-Okla., and House Education and Workforce Committee Chairman Tim Walberg, R-Mich., filed an amicus brief Tuesday with 43 members of Congress urging the Supreme Court to reverse a 10th Circuit ruling that allowed Colorado to exclude Catholic preschools from its universal preschool program. The Court is set to hear the case, St. Mary Catholic Parish in Littleton, CO, et al. v. Lisa Roy, et al., during its October 2026 term.

"Colorado decided Catholic preschools didn't get the same shot as everyone else, just because of their beliefs. That's not religious liberty, that's discrimination," said Lankford. "I'm proud to join this brief and ask the Court to protect every family's right to choose a school that reflects who they are."

The brief warns that if the 10th Circuit decision stands, states could adopt similar exclusions that would undermine the federal tax credit scholarship program created under the Working Families Tax Cuts Act. Eight senators joined Lankford, including Sens. Ted Cruz, R-Texas, Chuck Grassley, R-Iowa, and Ted Budd, R-N.C.

Georgia senators issued three state-focused releases Tuesday. Ossoff pushed the USDA Risk Management Agency to re-evaluate wind data from the National Hurricane Center's February 2026 report and reconsider indemnity payment eligibility for farmers in eleven coastal and inland counties who purchased Hurricane Insurance Protection – Wind Index coverage but received no payments after Helene.

"I ask for your commitment that RMA will re-evaluate the available data produced by the NHC during and since Hurricane Helene to reconsider the HIP-WI eligibility determinations for Screven, Effingham, Chatham, Bryan, Evans, Liberty, Long, McIntosh, Wayne, Glynn, and Camden counties," Ossoff wrote to USDA Risk Management Agency Administrator Pat Swanson.

Sen. Raphael G. Warnock, D-Ga., released a Joint Economic Committee report finding the average Georgia family has paid $2,400 more per year for essentials — including $310 more for groceries and $350 more for gas — since January 2025. "This report puts in numbers what so many Georgians already know: Donald Trump has failed to make their lives better or more affordable since he's returned to the White House," Warnock said. Warnock also visited Columbus Technical College Monday to highlight his bipartisan Pathways to Prosperity Act, joining students in a welding tutorial. "Work gives people purpose — it gives you a reason to get up in the morning," he said. "And it's the only thing that's going to give us a competitive edge in the 21st Century."

In an op-ed published in Fox News, Sen. David McCormick, R-Pa., promoted the "Trump Accounts" program created under the Working Families Tax Cuts Act — $1,000 Treasury-seeded investment accounts for children born between 2025 and 2028. McCormick, who described casting the deciding Senate vote for the legislation, wrote that Michael and Susan Dell's $6.25 billion philanthropic pledge represents "patriotism made concrete: private generosity expanding ownership, opportunity and a stake in America's future for millions of children."

In the Washington Examiner, Sen. Rick Scott, R-Fla., argued that NATO is stronger for President Trump's pressure on alliance members to meet defense commitments. "Trump did what his predecessors could not. He made it clear that every NATO ally must live up to its commitments, including Article 3 of the North Atlantic Treaty, which requires every member to build and maintain its own capacity to defend itself first," Scott wrote, with the piece timed to a NATO summit in Turkey.

Sen. Jon Husted, R-Ohio, hosted VA Secretary Doug Collins at the Dayton VA Medical Center, highlighting two pending bills: the Rural Veterans' Improved Access to Benefits Act and the Veterans' ACCESS Act. "Our veterans put their lives on the line for our country and deserve access to high-quality health care," Husted said.

Sen. Katie Boyd Britt, R-Ala., chair of the Banking Committee's Housing, Transportation, and Community Development Subcommittee, questioned three nominees Tuesday: John Crews for the National Credit Union Administration, Christopher Phelan to chair the Council of Economic Advisors, and Jeffrey Ledbetter to serve as HUD inspector general.

Britt pressed Crews on balancing financial innovation with safety at credit unions: "How are you going to make sure that you keep them safe … that you're giving them the most up to date technology that allows them to meet the needs in front of them, but that we're doing it in a way that it remains safe and sound and well positioned for the future?"

On HUD oversight, Britt asked Ledbetter what his priorities would be "for ensuring that these taxpayer dollars that people work really hard for are being used wisely and efficiently, that we are rooting out where there is waste, fraud, and abuse, so that the people who do need help, we still have the resources to be able to do that."

Signals

• volumeTuesday's release count of 15 ran 84% below the Tuesday average of 94, consistent with the ongoing Independence Day state work period recess.
• recessThe Senate remains in its Independence Day state work period; no floor votes are scheduled and no releases originated from floor statements.
• coordinatedThree separate Democratic actions targeting the same OMB federal grants rule landed Tuesday — a full-caucus letter, an energy appropriators letter from Murray, and a public comment led by Warner — a rare same-day triple filing on a single regulatory docket.
• silent breaksSen. Thom Tillis, R-N.C., has issued no public communications in 64 days; Sen. Mitch McConnell, R-Ky., has been quiet for 28 days.

Quiet desks

Senators with no release in two weeks or more.

• Sen. Thom Tillis, R-NC64d
• Sen. Mitch McConnell, R-KY28d
• Sen. Rand Paul, R-KY34d