Court Issues Preliminary Injunction Against OMB Funding Freeze
On February 26, the D.C. District Court issued a Preliminary Injunction in National Council of Nonprofits v. OMB, extending the previous Temporary Restraining Order (TRO) against the Administration’s funding freeze. The court rejected OMB’s argument that the case is moot, noting that disbursements only resumed after the temporary restraining order was issued.
The ruling prohibits OMB from reinstating or rebranding the funding pause outlined in OMB Memo M-25-13 and requires OMB to notify all federal agencies of the court order. A compliance report demonstrating federal compliance with the injunction is due by February 28.
Impact on Researchers:
Funding Disbursements Should Continue – The court’s injunction prevents OMB from reinstating or renaming the funding freeze, meaning agencies must continue disbursing federal funds for open awards.
No Immediate Blanket Pauses – Researchers with existing awards should not experience sudden funding disruptions due to broad policy changes.
What to Do Next
Monitor Agency Communications – Stay updated on any communications received from sponsors and provide them promptly to your DCG Officer.
Proceed with Award Spending Plans – Since disbursements are continuing, researchers should move forward with funded projects as planned consistent with their award terms and conditions.
Stay Informed – The legal situation is evolving, so please keep an eye on future Newsflashes and for more information on federal directives and their implications, please also visit our DCG Federal Directives page.