Updated information sent 1/29/2025 at 11:20AM
News outlets are reporting that the Office of Management and Budget (OMB) has withdrawn the memo released earlier this week that sought to impose a pause in federal grants and funding, which may effectively end this effort, at least for the time being. We have continued to do outreach to agencies, to Capitol Hill and to stakeholder allies to gather information. To the extent that this might return, we’re also in the process of setting up a resource center on ACEC’s website that you can drive your members to for information from the White House, from Capitol Hill, and resources generated by ACEC.
Updated information sent 1/28/2025 at 3:45PM
Following up on my message below, we have received word that a federal judge has temporarily blocked the freeze on federal financial assistance, disbursements and grant awards referenced in the attached OMB guidance. As we understand it the judge’s order is temporary and set to expire on Monday. We will provide further information as it becomes available. While it is uncertain to what extent the courts will ultimately limit implementation, the information provided below may be useful to your members in understanding the potential scope of the impact should it be cleared for implementation. For this reason feel free to circulate the information to your members, with the update as it relates to this recent court action.
1/28/2025 at 2:34PM
Yesterday the White House Office of Management and Budget (OMB) released a memo ordering a temporary freeze on all federal financial assistance, disbursements, and grant awards. The memo excludes Social Security, Medicare, and direct assistance to individuals.
In response to a flurry of questions and criticism, OMB provided a short response memo and FAQ. Both documents are attached.
We are continuing to review the memo and related resources, and we have also reached out to several departments and agencies for information on how they will interpret and implement the order. As you can imagine, there is a great deal of uncertainty around how this will play out in the coming days and weeks.
According to the memo, the pause is intended to provide time for agencies to review their existing programs and grants for consistency with the Executive Orders and other policy priorities announced last week. The memo states:
“To implement these orders, each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders. In the interim, to the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
This temporary pause will 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.
Timeline
The temporary pause goes into effect today, Tuesday, January 28, 2025, at 5:00 p.m.
Agencies are directed to submit to OMB detailed information on any programs, projects, or activities subject to this pause by Monday, February 10, 2025.
Next Steps
The memo provides that “Each agency must pause: (i) issuance of new awards; (ii) disbursement of Federal funds under all open awards; and (iii) other relevant agency actions that may be implicated by the executive orders, to the extent permissible by law, until OMB has reviewed and provided guidance” to the agency with respect to the information submitted.
OMB may grant exceptions allowing Federal agencies to issue new awards or take other actions on a case-by-case basis.
In addition, agencies are directed to
review currently pending Federal financial assistance announcements to ensure Administration priorities are addressed, and, subject to program statutory authority, modify unpublished Federal financial assistance announcements;
withdraw any announcements already published; and,
to the extent permissible by law, cancel awards already awarded that are in conflict with Administration priorities.
According to a follow-up document sent to agencies, the review includes these questions:
Does this program include activities that impose an undue burden on the identification, development or use of domestic energy resources (including through funding under the Inflation Reducing Act 2022; and the Infrastructure Investment and Jobs Act)?
Does this program provide funding that is implicated by the directive to end discriminatory programs, including illegal DEI and “diversity, equity, inclusion, and accessibility” (DEIA) mandates, policies, programs, preferences, and activities, under whatever name they appear, or other directives in the same EO, including those related to “environmental justice” programs or “equity-related” grants?
These are directives under the Executive Orders on Unleashing American Energy and Ending Illegal Discrimination and Restoring Merit-Based Opportunity.
Impacted Programs of Interest
Based on our current understanding, here is a sample list of federal programs of interest that may be subject to temporary suspension and review. We continue to seek confirmation:
Transportation
Airport Improvement Program
TIFIA
Amtrak, Intercity Passenger Rail, and rail infrastructure programs
Transit capital assistance grants
Port Infrastructure Development
RAISE, MEGA, Safe Streets and Roads for All, and other competitive discretionary highway grants
(Note that EV charging stations, reconnecting communities, and other grants explicitly referenced in the EO are at risk of being eliminated or have funding withheld beyond a temporary pause.)
Energy
Nuclear Legacy Cleanup Program
Federal Loan Guarantees
Grid Infrastructure Deployment & Resilience
Energy Efficiency & Conservation Block Grant Program
State Energy Program Special Projects
Environmental Remediation & Waste Processing
Environment
Clean Water and Drinking Water State Revolving Loan Funds
WIFIA
Brownfields
Superfund and other hazardous waste remediation grants
EPA’s geographic programs, and
Projects funded by Congressional earmarks in addition to all other EPA discretionary grant and loan programs.
(Note that EPA grants or loans that provide specific assistance to disadvantaged communities or for environmental justice are potentially at risk of being eliminated or have funding withheld beyond a temporary pause.)
Federal Acquisition
DoD Mentor-Protégé Program
Procurement Technical Assistance Centers (PTAC) program
SBIR programs at Agriculture and Commerce
Numerous DHS grant programs on physical infrastructure protection
USAID/State – Foreign Assistance to American Schools & Hospitals Abroad, Denton Program, Global Development Alliance
Conclusion
The memo is very broad and has wide-ranging impacts. Member firms may receive temporary stop-work orders from federal agency clients and from state/local grant recipients until they complete their program reviews and/or receive additional implementation guidance. Some announced infrastructure grant awards that are not yet obligated (i.e. under federal grant agreement) may be withdrawn. We will continue to circulate information as it becomes available, and please do not hesitate to contact me with any questions.
Steve
Steve Hall
Executive Vice President
The American Council of Engineering Companies
1400 L Street NW, Suite 400
Washington, DC 20005