OMB Orders a Temporary Pause on Federal Grants and Loans as Agencies Review Financial Assistance Against Executive Orders
On January 27, 2025, the White House Office of Management and Budget (OMB) sent memorandum M-25-13 to the heads of executive departments and agencies, requiring them, to the extent permissible under applicable law, to temporarily pause all activities related to the obligation or disbursement of federal financial assistance, so that agencies could review their grants, loans and other assistance programs against the executive orders President Donald Trump had signed in his first week in office. The pause was to take effect at 5 p.m. on January 28.
The memorandum was issued by OMB Acting Director Matthew J. Vaeth. It stated that the federal government spent more than $3 trillion in fiscal year 2024 on financial assistance such as grants and loans, that taxpayer money is a precious public trust, and that the administration's policy is to ensure federal spending aligns with the president's priorities. It named, among the activities implicated by the executive orders, financial assistance for foreign aid, nongovernmental organizations, diversity, equity and inclusion (DEI) programs, woke gender ideology and the Green New Deal.
Under the memorandum, agencies were to identify and review all federal financial assistance programs for consistency with the president's policies and requirements; during the review they were to pause obligations and disbursements and related activities such as funding-announcement reviews, and to submit detailed information on the affected programs, projects and activities to OMB no later than February 10, 2025. OMB could grant exceptions in limited circumstances on a case-by-case basis.
The memorandum also specified exemptions: Medicare and Social Security benefits were not subject to the pause, nor was assistance provided directly to individuals. OMB said the temporary pause would provide the administration time to review agency programs and determine the best uses of the funding for those programs, consistent with the law and the president's priorities.
Because the memorandum reached a vast number of programs relied on by state and local governments, universities, nonprofits and businesses, it drew nationwide attention on the night of January 27, as agencies worked to map which of their programs fell within its scope.
(Source: Office of Management and Budget)
Source: Office of Management and Budget
Published by GSM · USA (original Chinese edition)
Photo: 图：位于华盛顿的艾森豪威尔行政办公大楼，管理和预算办公室设于此楼。（Abovfold 摄，CC BY-SA 4.0，经 Wikimedia Commons） / Photo: The Eisenhower Executive Office Building in Washington, which houses the Office of Management and Budget. (Abovfold, CC BY-SA 4.0, via Wikimedia Commons)
