After an immediate, severe backlash against OMB’s January 27 memo ordering a freeze on almost all federal financial assistance, as well as legal action that led to a January 28 temporary restraining order issued by the D.C. District Court minutes before the freeze was to go into effect, the Trump administration has now rescinded that memo.
Although the OMB’s memo regarding the temporary pause on federal financial assistance is no longer in place, the White House has confusingly stated that the federal funding freeze directed by recent Executive Orders is itself still in place and that the OMB memo was only rescinded to “end any confusion created by the court’s injunction.”
Given the continued uncertainty and confusion relating to grant funding, grant recipients, particularly those with grants under the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, should prepare for potential future interruptions in the obligation and disbursement of funds under those agreements and evaluate immediate cash flow requirements.
If you have any questions regarding the recent changes to federal contract and grant rules or how they may impact your organization, please contact the author for further clarification.