Less than 48 hours after its initial release, a memo ordering the freeze of more than $1 trillion in federal grants, loans, and financial assistance was rescinded by the Office of Management and Budget (OMB). The memo, titled Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs (M-25-13), was withdrawn following a temporary injunction from a federal judge.
The Trump Administration stated that the memo was rescinded in an effort to eliminate confusion. However, White House officials emphasized that the broader policy remains in effect and will be enforced. In a post on social media, White House Press Secretary Karoline Leavitt further specified that Trump’s executive orders banning the use of federal funds for diversity programs, abortion, and other policy priorities opposed by the new administration “remain in full force” despite the recission of the OMB memo.
For insight on common questions about the status of Federal Financial Assistance, the OMB Memo, and the Freeze as of the morning of January 30th, see here for information from Venable LLP, which offers a Q&A on the subject. This is a developing situation, and much remains unclear. For information and questions, contact RCRC Senior Vice President of Government Affairs, Mary-Ann Warmerdam.