What the 2026 Midterms Mean for Federal Grants (And What Hasn’t Changed)
Nov 9
/
Rachel Werner
The midterm elections are over, and the results marked a significant shift in Washington with the Democrats winning control of both the House and Senate.
What does it all mean for federal grants? The people we elect shape funding priorities, decide how money is allocated, and oversee the programs that support our communities.
The good news? A new Congress doesn’t change your grants overnight. Here’s what happened, what hasn’t changed, and three areas you should be watching.
What Happened?
The 2026 midterms resulted in the Democrats taking control of both the House and Senate. The new Congress will take office on January 3, 2027.
President Trump will serve the remainder of his term, but the new Congress will have significant influence over legislation, oversight of federal agencies, and importantly for grant teams, federal spending.
What Hasn’t Changed?
Election results don’t automatically change federal grant requirements.
The current Uniform Guidance and agency regulations or terms related to your award still apply. Any changes still need to go through formal routes, they can’t just happen overnight.
So for now, keep following the rules as they stand, but keep reading the news on grants.
But What Could Change?
1. The Uniform Guidance rewrite
If you’ve been following the proposed changes to 2 CFR 200, you’ll know about this one.
In May, the Office of Management and Budget (OMB) proposed replacing the Uniform Guidance with the Uniform Grants Regulation and turning it into binding regulation.
Some of the proposed changes likely to have the biggest impact on grant teams include:
Broader agency authority to terminate discretionary awards
The elimination of fixed-amount awards
A new E-Verify participation requirement
It’s on hold for now, but only until December 11.
The current Congress must pass another spending bill which could extend the pause further or let it expire. This decision sits with the current Congress, though, not the newly elected one. There is a lookback period when the newly elected Congress and review pass legislation from recent months, which can elongate the process further.
What if OMB finalizes the rewrite after December 11? The new Congress could vote to overturn it under the Congressional Review Act (although it would still need Presidential sign off).
2. Federal funding priorities
The fiscal year started October 1, but the budget isn’t done yet. The spending bills for FY2027 still aren’t law, and the government is running on the same stopgap bill that paused the Uniform Guidance rewrite.
If the budget rolls past December 11 and into the new year, it’ll be the new Congress holding the writing power.
Whoever writes it, the final bills will shape funding levels, restrictions, and priorities for programs supporting nonprofits, state and local governments, and tribal nations.
What does that mean for your grant teams? Funding uncertainty may lead to some delays and shifting timelines. Definitely one to watch.
3. Agency accountability
It’s federal agencies who decide who receives grants and what conditions come with them, not Congress. But from January, the Democrats are expected to take over chairing the committees overseeing those agencies.
Expect greater attention to agency grantmaking decisions, executive branch policies, and the implementation of new requirements through NOFOs and award conditions.
The administration's priorities may also face increased scrutiny when routed through agency regulations.
What does this mean for your team? Requirements may keep shifting at the NOFO and award level, so read every new funding notice and award agreement carefully. Don’t assume the terms match your last grant, as there can be some deviations.
What Do You Need to Do?
You don’t need to panic or start over. But it’s always good to get ahead and be prepared.
Here are five things we’d recommend:
Most importantly, work proactively to assess your risk areas and where your organization might be most vulnerable.
Here are five things we’d recommend:
- Re-read your current grant terms. These are what matter right now, and it’s crucial you understand them properly before any potential changes.
- Mark December 11 on your calendar. Watch what happens with federal funding legislation and the proposed Uniform Grants Regulation.
- Plan for potential delays. Think about how your organization would manage if new awards, payments, or approvals take longer than expected.
- Brief your teams. Knowledge around what’s changing and what isn’t shouldn’t sit with you alone.
- Read every new NOFO carefully. Look out for new or amended language, and don’t assume the terms match your last grant.
Most importantly, work proactively to assess your risk areas and where your organization might be most vulnerable.
Final Thoughts
It’s a big time for our grant community, and there are sure to be plenty of headlines in the weeks ahead. But the message stays the same: stay informed, read your award terms, and be prepared to adapt.
We’ll be following it all very closely and helping make sense of what it all means for your entity. Subscribe to our newsletter for regular updates, and connect with me, Rachel Werner, on LinkedIn for practical insights that help make those headlines clearer and more relevant to you and your team.
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Martha A Moore, MPA, DTM, CNAP, has been working in the accounting industry for over 35 years. Over that time, she has worked in the Grants Management area for 20 years. She has recently received the Certified Nonprofit Accounting Professional (CNAP) credentials. Martha’s expertise in grants management field is in the post-award/closing/audit areas, while serving as an advisor to preaward budgeting and program narrative. Thanks to her many years in the accounting/grants management industry, Martha has the ability to zoom out and holistically see the big picture and how external funding can be crafted for effective and efficient use. She believes in team approach with both finance and program team at the table to ensure a clear and comprehensive award application, with the end goal being grant awards. Martha also has extensive experience in subaward management from a university to a local nonprofit organization. Martha is a public speaker and trainer, thanks to her many years (20+) in Toastmasters International. She earned the highest designation, Distinguished Toastmaster, and puts those skills to use daily. Martha’s niche’ is the desire to see local nonprofits (BIPOC startups to mature nonprofits) succeed in securing funding to fulfill community gaps in partnership with the philanthropists, private sectors, local, state, and federal governments.