First Look: OMB “Passback” Document Previews Potential Cuts to Commerce Grants

/ 25-07

A “budget passback” document for the Department of Commerce (DOC) recently was made public. It represents the Office of Management and Budget’s (OMB’s) discretionary funding recommendations as part of the fiscal year (FY) 2026 president’s budget submission.

The document states, “Passback eliminates functions of the Department that are misaligned with the President’s agenda and the expressed will of the American people. This includes eliminating [the Economic Development Administration]… and climate-related programs within [the National Oceanic and Atmospheric Administration].” The document is labeled “pre-decisional,” suggesting it is subject to change.

Of note, OMB specifies that it expects DOC—to the extent possible—to align its FY 2025 spending plan with the priorities set forth in the budget passback. This leaves open the possibility that the proposed program eliminations for FY 2026 will be applied in the current fiscal year, despite those programs receiving congressionally appropriated funds.

This “First Look” Budget Brief focuses narrowly on proposed FY 2026 funding changes to FFIS-tracked grants.

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