Live Updates:

Federal Funding Freeze

Last Updated: January 30, 2025, 11:30 AM ET

There has been a flurry of activity for grant seekers, awardees, and those who are in the middle of grant-funded projects. The CFS team is closely monitoring executive orders, official memos and releases, and press updates to provide you with accurate information on real-world implications and what to expect next.

To ensure you are informed about the latest updates on these changes and how they will be implemented, we have created a dedicated landing page to provide you with comprehensive information as it becomes available. Below, you will find a summary of recent activity that will continue to be updated live on the site. Bookmark this page to stay current.

CFS Daily Debrief: January 30, 2025

With eyes in the Capitol turned towards emergency response and confirmation hearings, today seemed eerily quiet after what has been a tumultuous week for those in the federal funding space. Late Wednesday night, President Trump released two executive orders directed at the Department of Education. While most of the text has implications on formula funding programs, certain sections suggest there will be an emphasis on educational choice and a removal of “divisive” content that will impact competitive funding applicants.

Additionally, newly confirmed Transportation Secretary, Sean Duffy, released a memo to Department of Transportation employees, directing them to halt activities around “climate change activism, Diversity, Equity, and Inclusion (DEI) initiatives, racial equity, gender identity policies, environmental justice, and other partisan objectives.”

With the recent confirmation of Lee Zeldin as the Administrator of the Environmental Protection Agency (EPA), we would not be surprised to see updated agency guidance on EPA funding programs coming in the next few days.

January 30, 2025 | 11:30 AM ET

The Trump Administration issued two executive orders Wednesday night directed at the Department of Education. Collectively, these executive orders aim to reshape the allocation and conditions of federal funding in education.

The first EO, titled “Ending Radical Indoctrination in K-12 Schooling,” will increase scrutiny of how discretionary funding is spent to ensure that federally funded initiatives do not promote what the administration calls “divisive” content, including critical race theory and gender identity education. Programs with DEI initiatives could see their funding reduced or eligibility requirements altered.

The second EO, titled “Expanding Educational Freedom and Opportunity for Families,” will shift federal education funding toward school choice initiatives, or “educational freedom,” that expand access to charter schools, private schools, and voucher-based programs. The order calls for reviews and guidance on how existing federal funds can be used to expand educational choices for low-income families, military-connected families, and students eligible for Bureau of Indian Education schools.

Future applicants to the Department of Education should be prepared to align proposals with these updated federal priorities.

Sources: Executive Order to Ending Radical Indoctrination in K-12 Schooling – White House

Expanding Educational Freedom and Opportunity for Families – White House

January 30, 2025 | 8:00 AM ET

The newly confirmed Secretary of Transportation, Sean Duffy, signed a memorandum titled “Woke Rescission,” directing Secretarial Officers and Heads of Operating Administrations to identify and eliminate all Biden-era programs, policies, activities, rules, and orders that promote climate change activism, Diversity, Equity, and Inclusion (DEI) initiatives, racial equity, gender identity policies, environmental justice, and other partisan objectives.

Source: Department of Transportation

CFS Daily Debrief: January 29, 2025

Today, the Office of Management and Budget released a clarifying memo rescinding Monday’s original guidance to temporarily pause federal aid programs. In response, White House Press Secretary Karoline Leavitt posted via X, “This is NOT a rescission of the federal funding freeze. This is simply a rescission of the OMB memo.” Legal challenges to President Trump’s federal spending freeze also intensified today as a second federal judge signaled plans to block the policy, citing conflicting White House messaging. As the situation develops, agencies have been directed to consult their legal teams on implementing the executive orders, which remain active and in place.

January 29, 2025 | 4:45 PM ET – A federal judge has indicated plans to block President Trump’s recent federal spending freeze, citing conflicting messages from the White House regarding its implementation. This follows a previous temporary halt by another judge, as legal challenges to the freeze continue.

Source: Politico

January 29, 2025 | 2:00 PM ET – White House Press Secretary Karoline Leavitt posted on X following OMB’s new guidance, saying, “This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. Why? To end any confusion created by the court’s injunction. The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”

Source: Washington Post

January 29, 2025 | 1:00 PM ET – OMB has rescinded its initial memorandum, M-25-13. The new memo published by OMB states, in full, “OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President's Executive Orders, please contact your agency General Counsel.”

Source: Associated Press

January 29, 2025 | 9:00 AM ET – The National Science Foundation (NSF) released a special notice in response to the Office of Management and Budget memo pausing all review panels and new awards. NSF has created an “executive order implementation webpage” to update its community as it receives additional guidance.

Source: National Science Foundation

CFS Daily Debrief: January 28, 2025

What has been a 36-hour whirlwind has finally come to a (temporary) end for the federal funding world. A vaguely worded two-page memo released by the Office of Management and Budget directing federal agencies to temporarily freeze all federal funding by 5:00p Tuesday evening. However, that guidance was stayed by U.S. District Judge Loren L. AliKhan after a suit was filed by three advocacy groups at-risk of losing funding. The freeze has brought up important questions around perceived election mandates, aligning existing federally funded programs to new administration priorities, and the impact of the Impoundment Control Act on executive branch powers. As the situation evolves, staying informed and connected with funding agencies will be key. The Capitol Funding Solutions team is dedicated to bringing you the most up-to-date information on federal funding programs. Check back to our live updates page to stay informed on the latest updates.

January 28, 2025 | 4:45 PM ET - An order from U.S. District Judge Loren L. AliKhan has temporarily blocked the funding pause released by Office of Management and Budget. The judge's administrative stay will expire Monday afternoon.

Source: Associated Press

January 28, 2025 | 4:00 PM ET - A motion for a temporary restraining order was filed in the U.S. District Court for the District of Columbia on Tuesday by three advocacy groups.

Source: Reuters

January 28, 2025 | 2:15 PM ET - Attorneys General across nine states announced they will seek an injunction blocking the Trump administration from freezing as much as $3 trillion in federal grants, loans and aid.

Source: Law 360

January 28, 2025 | 12:00 PM ET - Office of Management and Budget releases clarifying memo stating that any program which provides direct benefits to individuals is not subject to the pause. It also clarifies that the pause "may be as short as a day", it does not apply across-the-board to federal agencies, and they do not believe it violates the Impoundment Control Act.

Source: OMB Q&A M-25-13

January 28, 2025 | 9:00 AM ET - Office of Management and Budget provides additional guidance to departments on how to report program activities and planned funding activities. This included a comprehensive list of Federal programs including anticipated obligations or funding disbursements through March 15 and "eight yes/no" questions to determine if programs may be implicated by the new executive orders.

Source: Support Document for M-25-13

January 27, 2025 | 10:45 AM ET - US Department of Energy Office of Science releases an email highlighting how the agency is moving aggressively to implement Executive Orders. The Department announced the suspension of DEI policies and procedures; requiring, using, or enforcing Community Benefits Plans (CBPs); and the suspension of enforcing Justice40 requirements in any loans, grants, and other sources of financial assistance.

Source: Department of Energy

January 27, 2025 | 9:15 AM ET - Office of Management and Budget releases a memorandum to heads of executive departments and agencies implementing a temporary pause of agency grant, loan, and other financial assistance programs effective January 28, 2025, at 5:00p ET. The memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements. OMB also directs Federal agencies to pause all activities associated with open NOFOs, such as conducting merit review panels. Agencies will have until February 10, 2025, to submit detailed information on activities and programs subject to this pause.

Source: OMB M-25-13

January 20, 2025 | 3:00 PM ET - President Trump signs an executive order titled "Unleashing American Energy," aimed to enhance U.S. energy production. The order rescinds a number of executive orders from the Biden Administration on energy and works to terminate the "Green New Deal". It also specifically calls on agencies to immediately pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022 (also referred to as the IRA) and the Infrastructure Investment and Jobs Act (also referred to as the Bipartisan Infrastructure Law or "BIL").

Source: Unleashing American Energy - The White House

January 20, 2025 | 3:00 PM ET - President Trump signs executive order titled "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," ordering all executive departments and agencies to terminate "discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements." It also instructs the Office of Management and Budget to remove references to DEI and equity principles from Federal acquisition, contracting, grants, and financial assistance procedures.

Source: Ending Illegal Discrimination and Restoring Merit-Based Opportunity - The White House