Trump Administration to Pause All Federal Grants & Loans
On January 27, 2025, the Office of Management and Budget (OMB) issued memorandum M-25-13, Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs. This memorandum requires Federal agencies to "identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements," including certain recent executive orders.
The OMB memorandum requires that while these reviews are being conducted, Federal agencies must, to the extent permissible under applicable law, pause disbursement of Federal funds under all open awards.
This temporary pause is intended to provide the Administration with time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities. The pause goes into effect at the close of business, January 28, 2025 at 5:00 p.m. ET.
Please be advised that while this pause is in effect, federal drawdown accounts will be suspended and no drawdowns will be possible. If you have any open drawdowns or grants/loans currently under management, we advise that you immediately work with your finance team to assess the status of your drawdowns and ensure you are up to date. Grant and loan funds that you are legally entitled to may be frozen after 5 pm on January 28, 2025.
If you have any federal grant applications pending, we recommend that you continue with the submission process unless otherwise advised by that Federal agency.
It is important to note that previously approved federal grant programs are passed by Congress into law. This is a legal issue that many legal experts are still weighing in on. The situation is unfolding in real-time. We know that New Jersey has joined with several states in a lawsuit to stop this freeze. However, this is an unprecedented measure. The Aubrey Group will continue to monitor this situation and provide immediate updates for our clients. As we grapple with this issue, The Aubrey Group will provide regular assessments on other funding sources that can be leveraged during this time and throughout this Administration.
Please contact us as soon as possible for assistance if you have not already. You can reach out to CEO Sarah Aubrey or Project Manager Connor Schmiegel at saubrey@theaubreygroup.org / 201-273-6759 or Connor Schmiegel at cschmiegel@theaubreygroup.org / 856-535-1009 with any questions or concerns.
