OMB Issues Then Lifts Temporary Pause of Agency Grants, Loans, and Other Financial Assistance
On Monday, January 27, 2025, the Office of Management and Budget (OMB) issued a memo,
M-25-13, ordering a temporary pause on the issuance of new awards, disbursement of federal funds under all open awards, and conduct of merit review panels and all activities related to disbursement or obligation of “all federal financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.” The memo went into effect at 5:00 PM (ET) on January 28 and was
lifted the following day. White House Press Secretary Karoline Leavitt said in a
statement that OMB pulled the memo “to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” but emphasized that the rescission was not meant to end the funding pause, and does not preclude the issuance of a similar memo with a comparable purpose in the future. Legal actions have been taken in reaction to the recent actions of OMB and federal agencies have begun to issue their own guidance in relation to at-risk activities and programs.
HHS Secretary Nominee Advances to Full Senate Vote
On Tuesday, February 4, 2025, Robert F. Kennedy Jr., President Donald Trump’s nominee for Secretary of the U.S. Department of Health and Human Services (HHS), was advanced by the Senate Finance Committee following confirmation hearings with both the Senate Finance and Health, Education, Labor, and Pensions Committees. Kennedy’s career began as an environmental lawyer, but he later became a vocal critic of the nation’s healthcare system. Among his views on health care, he has raised concerns about the link between food and mental health. Kennedy now awaits a full Senate vote to officially secure the position.
