According to the Public Access to Court Electronic Records, a motion hearing for preliminary injunction is set for February 20, 2025, in regard to the Office of Management and Budget (OMB) Memorandum M-25-13. Memorandum M-25-13, dated January 27, announced a temporary pause on federal financial assistance programs, including grants, loans, and other financial support.
The hearing is part of continued litigation in regard to a temporary restraining order (TRO) issued by D.C. Circuit Judge Loren AliKhan. AliKhan granted a TRO on February 3 to prevent the OMB from “implementing, giving effect to or re-instating under a different name the directives from Memorandum M-25-13.” OMB Memorandum M-25-13 was rescinded on January 29.
A TRO provides immediate, short-term relief to prevent irreparable harm until a more formal hearing can be held. A preliminary injunction provides longer-term relief to prevent harm during the entire duration of the legal proceedings.
The OMB responded to the TRO by notifying heads of executive departments and agencies of the following:1
- Your agency “may not take any steps to implement, give effect to, or reinstate under a different name the directives in OMB Memorandum M-25-13 with respect to the disbursement of Federal Funds under all open awards.”
- Your agency must “release any disbursements on open awards that were paused due to OMB Memorandum M-25-13.”
The OMB response further stated:
- The instructions apply only to existing awards “that have already been approved and partially disbursed.”
- “Thus, the instructions do not apply to issuance of new awards, or to awards that have not yet been awarded to specific individuals or entities (such as NOFOs [Notice of Funding Opportunities]).”
- The instructions “do not restrict agencies’ compliance with the President’s recently issued Executive Orders, nor do they restrict agencies’ ability to take actions pursuant to their own authorities ...”
As the situation develops, Forvis Mazars will continue to issue updates. Gaining a deep understanding of the funding details provides you with the insight needed to make well-informed decisions. By learning these complexities, you can better navigate obstacles and feel confident in your choices.
The Forvis Mazars Grants Management Services team is here to help with questions or concerns around the potential pause in federal funding.
- 1Office of Management and Budget, “Memorandum for Heads of Executive Departments and Agencies,” February 3, 2025.