Earlier this week Office of Management and Budget (OMB) Acting Director Matthew Vaeth issued memorandum M-25-13, temporarily pausing all federal grants, loans and other financial assistance on January 28 at 5 p.m. ET.
OMB also released a Q & A, which states “funds for small businesses, farmers, Pell grants, Head Start, rental assistance and other similar programs will not be paused.”
Federal agencies received instructions to provide details on a host of financial assistance, including tax credits, private activity bonds and nearly all HUD and USDA programs. By February 7, all federal agencies must submit detailed information on whether the funding conflicts with the following executive orders:
- Protecting the American People Against Invasion (Jan. 20, 2025);
- Reevaluating and Realigning United States Foreign Aid (Jan. 20, 2025);
- Putting America First in International Environmental Agreements (Jan. 20, 2025);
- Unleashing American Energy (Jan. 20, 2025);
- Ending Radical and Wasteful Government DEI Programs and Preferencing (Jan. 20, 2025);
- Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government (Jan. 20, 2025); and
- Enforcing the Hyde Amendment (Jan. 24, 2025).
Legal Action: During a press conference, the New York Attorney General Letitia James announced a coalition of Democratic state attorneys general will pursue legal action.
Several organizations filed a Motion for Temporary Restraining Order in the U.S. District Court for the District of Columbia to block the memo. The organizations – National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE – argue that the memo violates the first amendment and the Administrative Procedure Act.
NH&RA will keep our members informed as we learn more from this quickly evolving memo.
