OMB Memorandum M-25-13 is Rescinded
The U.S. Office of Management and Budget issued a memorandum (M-25-13) late yesterday, Monday, January 27, requiring that all federal agencies temporarily pause disbursement of federal financial assistance. Funds for Social Security, Medicare and other programs providing direct aid to individuals appear to be exempt, and OMB may also grant exceptions on a case-by-case basis. Additionally, the memorandum contains a clause that states the pause is subject to what’s “permissible under applicable law.”
The pause goes into effect today, January 28 at 5:00 pm. The memo requires that by February 10, 2025, all federal agencies do an analysis of their own programs and submit the analysis to OMB showing if the programs align with the Administration’s priorities on foreign aid, non-governmental organizations, DEI, woke gender ideology, and the green new deal. OMB will then review the information and instruct the agencies on the next steps.
NASACT is reviewing the information and will be speaking with other organizations representing state and local governments to gauge the immediate impact. Each individual federal agency will likely be issuing more guidance directly on any grant or loans that are affected. NASACT will distribute additional information and keep members apprised as developments occur.
If you hear specific guidance from any individual federal agencies on grants in your state, please let us know.
UPDATE: Tuesday, Jan. 28, 4:45 p.m. ET
OMB has issued additional guidance regarding the memorandum entitled “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs” issued last night. The new memorandum states that the pause in funding does not apply to any program not implicated by the President’s Executive Orders and reiterated that any program that provides direct benefits to individuals is not subject to the pause.
The executive orders listed in the guidance include:
The memorandum also includes Q&As on the pause. Significant questions we’ve received throughout the day have included the status of Medicaid and student loans: they are addressed in the Q&As. NASACT will continue to keep members apprised as developments occur.
UPDATE: Wednesday, Jan. 29, 6:30 a.m. ET
A federal judge has issued a stay of the federal funding pause resulting from OMB memo M-25-13. Another hearing is set for Monday on this issue.
We have heard from some states that draw down options that were closed yesterday have been reopened for now. We understand members receiving numerous questions from subrecipients, other state agencies, and constituents so NASACT will continue to monitor the situation.
UPDATE: Wednesday, Jan. 29, 3:00 p.m. ET
Multiple news sources are reporting that the Administration has rescinded M-25-13, entitled “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs” that was issued earlier this week.
The new memo states that “OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel.”
We are seeking additional clarification in understanding the impacts of this recent memo as the Administration is stressing that the current slate of Executive Orders remain in effect. We will continue to keep the membership updated as more information becomes available.
The pause goes into effect today, January 28 at 5:00 pm. The memo requires that by February 10, 2025, all federal agencies do an analysis of their own programs and submit the analysis to OMB showing if the programs align with the Administration’s priorities on foreign aid, non-governmental organizations, DEI, woke gender ideology, and the green new deal. OMB will then review the information and instruct the agencies on the next steps.
NASACT is reviewing the information and will be speaking with other organizations representing state and local governments to gauge the immediate impact. Each individual federal agency will likely be issuing more guidance directly on any grant or loans that are affected. NASACT will distribute additional information and keep members apprised as developments occur.
If you hear specific guidance from any individual federal agencies on grants in your state, please let us know.
UPDATE: Tuesday, Jan. 28, 4:45 p.m. ET
OMB has issued additional guidance regarding the memorandum entitled “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs” issued last night. The new memorandum states that the pause in funding does not apply to any program not implicated by the President’s Executive Orders and reiterated that any program that provides direct benefits to individuals is not subject to the pause.
The executive orders listed in the guidance include:
- Protecting the American People Against Invasion
- Reevaluating and Realigning United States Foreign Aid
- Putting America First in International Environmental Agreements
- Unleashing American Energy
- Ending Radical and Wasteful Government DEI Programs and Preferencing
- Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government
- Enforcing the Hyde Amendment
The memorandum also includes Q&As on the pause. Significant questions we’ve received throughout the day have included the status of Medicaid and student loans: they are addressed in the Q&As. NASACT will continue to keep members apprised as developments occur.
UPDATE: Wednesday, Jan. 29, 6:30 a.m. ET
A federal judge has issued a stay of the federal funding pause resulting from OMB memo M-25-13. Another hearing is set for Monday on this issue.
We have heard from some states that draw down options that were closed yesterday have been reopened for now. We understand members receiving numerous questions from subrecipients, other state agencies, and constituents so NASACT will continue to monitor the situation.
UPDATE: Wednesday, Jan. 29, 3:00 p.m. ET
Multiple news sources are reporting that the Administration has rescinded M-25-13, entitled “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs” that was issued earlier this week.
The new memo states that “OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel.”
We are seeking additional clarification in understanding the impacts of this recent memo as the Administration is stressing that the current slate of Executive Orders remain in effect. We will continue to keep the membership updated as more information becomes available.