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OMB temporarily pauses agency grant, loan, and financial assistance programs

  1. Original Date Announced

    January 27, 2025

    OMB Acting Director Matthew J. Vaeth issued a memo addressed to all heads of executive departments and agencies on "Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs." The memo directed Federal agencies to "temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by" Trump administration executive orders, including "financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal." During the pause, agencies must review all federal assistance programs for consistency with Trump's executive orders and submit "detailed information" to OMB on "any programs, projects or activities subject to this pause" by February 10, 2025.

    The funding freeze would affect programs that assist noncitizens in the U.S., including EOIR's Office of Legal Access Programs, that were addressed by EO 14159, Protecting the American People Against Invasion.

    Trump 2.0 [ID #1505]

    2025.01.27 OMB Memo M-25-13 Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs
  2. Effective Date

    January 27, 2025
  3. Subsequent Trump and Court Action(s)

    • January 28, 2025

      2025.01.28 OMB Q&A Regarding Memorandum M-25-13

      OMB provided a Q&A Factsheet intended to clarify how agencies implement the M-25-13 directive: “the pause does not apply across-the-board. It is expressly limited to programs, projects, and activities implicated by the President’s Executive Orders, such as ending DEI, the green new deal, and funding nongovernmental organizations that undermine the national interest.”

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    • January 28, 2025

      2025.01.28 Nat'l Council of Nonprofits v. OMB, No. 25-239 (D.D.C.) - Complaint

      Advocacy groups representing non-profits and small businesses filed a federal lawsuit challenging the "Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs." Nat'l Council of Nonprofits v. OMB, No. 1:25-cv-00239 (D.D.C.).

      **Litigation entries are limited to initial complaints and major substantive rulings. For pleadings and additional information, use name and docket number to search Civil Rights Clearinghouse and CourtListener or visit Just Security Litigation Tracker**

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    • January 28, 2025

      2025.01.28 New York et al. v. Trump, No. 1:25-cv-00039 (D.R.I.) - Complaint

      23 states filed a federal lawsuit in Rhode Island challenging the "Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs." New York v. Trump, No. 1:25-cv-00039 (D.R.I.).

      *See litigation note above*

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    • January 28, 2025

      2025.01.28 AP News: Federal judge temporarily blocks Trump administration freeze on federal grants and loans

      In Nat'l Council of Nonprofits v. OMB, No. 25-cv-00239 (D.D.C.), Judge Loren L. AliKhan issued an “administrative stay” enjoining the Trump administration from implementing OMB Memorandum M-25-13. This administrative stay is scheduled to last until February 3, 2025.

      *See litigation note above*

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    • January 29, 2025

      2025.01.29 OMB Memo M-25-14 Rescinding Funding Freeze

      OMB issued Memo M-25-14 rescinding M-25-13. This memo informed federal agencies that the January 27, 2025, funding freeze on federal financial assistance programs, outlined in M-25-13, had been rescinded.

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    • January 31, 2025

      2-025.01.31 New York et al. v. Trump, No. 1:25-cv-00039 (D.R.I.) - Order Granting TRO

      In New York v. Trump, No. 1:25-cv-00039 (D.R.I.), Judge John J. McConnell issued a Temporary Restraining Order (TRO) blocking the Trump administration's efforts to freeze payments for grants and other programs.

      *See litigation note above*

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    • February 3, 2025

      2025.02.03 Nat'l Council of Nonprofits v. OMB, No. 25-239 (D.D.C.) - Order Granting TRO

      In Nat'l Council of Nonprofits v. OMB No. 25-cv-00239 (D.D.C.), Judge AliKhan issued an Temporary Restraining Order (TRO) blocking the Trump administration from implementing OMB Memorandum M-25-13.

      *See litigation note above*

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    • February 25, 2025

      2025.2.25 Nat'l Council of Nonprofits v. OMB, 1:25-cv-00239-LLA (D.D.C.) - Preliminary Injunction Opinion

      In Nat'l Council of Nonprofits v. OMB, No. 25-cv-00239 (D.D.C.), Judge AliKhan preliminarily enjoined the Trump administration from implementing, giving effect to, or reinstating under a different name the freeze on disbursement of federal funds.

      **Litigation entries are limited to initial complaints and major substantive rulings. For pleadings and additional information, use name and docket number to search Civil Rights Clearinghouse and CourtListener or visit Just Security Litigation Tracker**

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    • March 3, 2025

      2025.03.03 Complaint - Catholic Charities, Diocese of Forth Worth v. U.S. Dept. of Health and Human Services

      Catholic Charities, Diocese of Fort Worth ("CCFW") sued HHS in the D.C. District Court for unlawfully freezing federal funding and then failing to un-freeze federal grant funds obligated to CCFW for its refugee resettlement work, despite the government's rescission of OMB Memo M-25-13. CCFW seeks declaratory and injunctive relief. Catholic Charities, Diocese of Forth Worth v. U.S. Depot of Health and Human Services, 1:25-cv-00605 (D.D.C., filed on Mar. 3, 2025).

      *See litigation note above*

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    • March 6, 2025

      2025.03.06 Order Granting Preliminary Injunction - New York v. Trump

      In New York et al. v. Trump, No. 1:25-cv-00039 (D.R.I.), Judge John J. McConnell issued a preliminary injunction blocking the Trump administration's efforts to freeze payments for grants and other programs. The court held “that the Executive’s discretion to impose its own policy preferences on appropriated funds can be exercised only if it is authorized by the congressionally approved appropriations statutes.”

      *See litigation note above*

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