A District Court Judge in Washington, DC, has delayed the Office of Management & Budget directive to pause federal grant and finance programs pending agencies’ review and alignment with Administration priorities.
The White House Office of Management and Budget (OMB) issued a memo to federal agency leaders late Monday that would have frozen funds pending reviews, effective 5 p.m. ET on Tuesday. The directive impacts all federal grant and finance activities – including grant funding that has been awarded but not sent yet, any program open for application (with an open “Notice of Funding Opportunity”), and awarding any new funding. Individual assistance programs, specifically Medicare and Social Security, will not be impacted.
U.S. District Judge Loren AliKhan issued a “brief administrative stay” in the federal funding freeze as nonprofit and healthcare groups filed suit against the Trump Administration. The Judge’s order lasts until Monday, February 3, and only covers funds that congress has already appropriated.
Judge AliKhan cited the “specter of irreparable harm” in the event funding be suddenly paused and that the additional time is necessary as cases are pending. The stay does not touch on whether the funding freeze itself is legal.
Click here to read more from AASD about the OMB Directive issued on Monday, January 27.
AASD will keep members updated. Questions? Email contact@americasdistricts.org.