omb-memo-1-27

Memorandum Overview

• Director: Matthew J. Vaeth, Acting Director, Office of Management and Budget

• Date: January 27, 2025

• Subject: Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs

Context

• Presidential Mandate: Donald J. Trump elected to maximize federal taxpayer dollar impact.

• Financial Assistance Total: Over $3 trillion spent in Fiscal Year 2024 on federal financial assistance, which includes grants and loans.

• Agency Duties: Federal spending must align with Presidential priorities and the will of the American people.

• Key Goals:

  • Strengthening America

  • Mitigating inflation burdens

  • Promoting American energy/manufacturing

  • Ending perceived government weaponization and 'wokeness'

  • Reinforcing health initiatives

Executive Orders Impacting Financial Assistance

• Examples of Executive Orders:

  • Protecting Against Invasion (Jan. 20, 2025)

  • Reevaluating Foreign Aid (Jan. 20, 2025)

  • Unleashing American Energy (Jan. 20, 2025)

  • Ending Wasteful DEI Programs (Jan. 20, 2025)

  • Defending Against Gender Ideology Extremism (Jan. 20, 2025)

  • Enforcing the Hyde Amendment (Jan. 24, 2025)

Agency Responsibilities

• Comprehensive Analysis Requirement:

  • Each agency must analyze Federal financial assistance programs to ensure they align with the President's priorities.

• Temporary Pause Implementation:

  • Pause begins January 28, 2025, at 5:00 PM for all Federal financial assistance obligations/disbursements.

  • Specific areas affected include foreign aid, NGOs, DEI initiatives, and green deal funding.

Actions During the Pause

• Agency Obligations:

  • Identify legally mandated actions/deadlines during the pause.

  • Report obligations and deadlines to the Office of Management and Budget (OMB).

  • Pause includes all aspects of open Notices of Funding Opportunities (NOFOs).

• Reporting Deadline:

  • Agencies must submit detailed information on affected programs by February 10, 2025.

Specific Actions Required by Agencies

• Immediate Pauses Include:

  • New award issuance

  • Disbursement of funds under existing awards

  • Relevant actions tied to executive orders, pending legal limitations

• Senior Oversight:

  • Assign a senior official to oversee consistency with Administration priorities.

• Review Current Announcements:

  • Modify or withdraw pending Federal assistance announcements as needed to align with priorities.

• Support and Oversight:

  • Investigate underperforming recipients and take corrective actions including potential award cancellations.