Attached is the Office of Management and Budget (OMB) memorandum (M-25-13) issued on January 27, 2025, regarding a temporary pause on Federal financial assistance programs. Below is a summary of its key points:
Purpose of the Pause:
Federal agencies are required to review all financial assistance programs to align with the Administration’s priorities, as outlined in the memo. These include promoting efficiency, reducing inflationary burdens, and addressing specific presidential directives.
Effective Date:
The pause takes effect on January 28, 2025, at 5:00 PM.
Scope of the Pause:
The suspension temporarily applies to:
- New awards or obligations of Federal funds.
- Disbursement of funds under existing awards.
- Activities such as merit review panels for open Notices of Funding Opportunities (NOFOs).
Review Requirements:
Agencies are asked to:
- Identify programs and activities impacted by executive orders.
- Submit detailed information about paused programs to OMB by February 10, 2025.
- Assign oversight responsibilities to senior political appointees.
- Modify, withdraw or cancel Federal assistance announcements that conflict with Administration priorities.
Exceptions:
OMB may grant case-by-case exceptions. Agencies may continue legally required administrative actions, such as award closeouts or obligations mandated by law.
The Department of Contracts and Grants, in collaboration with Federal Relations, is closely monitoring the evolving situation to understand its implications and will keep you updated. We anticipate that each federal agency will provide additional details soon and will keep you informed of any further updates.