On January 27, the Office of Management and Budget (OMB) under President Trump issued a memorandum titled “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs.” The directive mandates Federal agencies to temporarily suspend the obligation and disbursement of federal financial assistance while conducting a comprehensive review of programs and awards to ensure alignment with the administration’s policies and priorities. As part of this review, agencies are also instructed to temporarily suspend the issuance of new program solicitations.
Certain financial assistance programs, such as Social Security, Medicaid, SNAP, Pell Grants, Head Start, and Rental Assistance, are specifically named as being exempt from the pause (OMB FAQs). The funding suspension will officially take effect on January 28, 2025, at 5:00 PM, with agencies required to submit detailed reports by February 10, 2025, identifying programs, projects, or activities impacted by the pause.
We are actively monitoring the situation and remain committed to keeping clients informed with the most up-to-date information and guidance. TFG will publish Special Reports with weekly updates, to ensure clients are well-informed and prepared to navigate these developments.