On February 25, 2025, U.S. District Judge Loren L. AliKhan granted a preliminary injunction in favor of the plaintiffs in the case of National Council of Nonprofits v. Office of Management and Budget (OMB) concerning Memorandum M-25-13. Memorandum M-25-13, released by the OMB on January 27, called for a temporary halt on federal financial assistance programs, including grants, loans, and other forms of financial support.
The preliminary injunction orders that OMB is “enjoined from implementing, giving effect to, or reinstating under a different name the unilateral, non-individualized directives in OMB Memorandum M-25-13 with respect to the disbursement of federal funds under all open awards.”
A preliminary injunction is issued in the early stages of a lawsuit to maintain the status quo until the lawsuit is resolved. It is temporary and serves to prevent potential harm while a case is ongoing.
This ruling comes after a temporary restraining order was granted on February 3. An appeal or response by the defendants has not currently been filed.
If you have any questions, please reach out to the Grants Management team at Forvis Mazars.