Live Updates:

Federal Funding Freeze

Last Updated: February 6, 2025, 5:00 PM 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 Brief: February 6, 2025

It will be a late night for the Senate as they are set to vote on President Trump’s nominee, Russell Vought, to lead the Office of Management and Budget (OMB). This is shaping up to be a more contentious vote than one would have previously thought after OMB released a memo in January putting a pause on all federal aid. The memo created confusion and chaos across the federal programs and was eventually rescinded by OMB after public outcry. Republicans maintain a majority in the Senate, so it is likely to see Vought confirmed across party lines. Luckily, Trump’s cabinet picks have not wasted any time getting to work so clarity from OMB may soon be in our future.

February 6, 2025 | 9:00 AM ET

Yesterday evening, Secretary of Energy Chris Wright signed his first order directing the Department of Energy to take immediate action to promote American energy initiatives in alignment with President Trump's executive orders. The directive outlines nine key actions that signify a strategic shift in federal funding priorities within the energy sector to “pursue a culture of transparency, performance, and common sense to succeed.” The DOE is expected to reallocate resources to support initiatives that bolster fossil fuel production, expedite energy infrastructure permitting, and strengthen grid resilience

Secretary Wright has directed the DOE to 1) Advance Energy Addition, Not Subtraction, 2) Unleash American Energy Innovation, 3) Return to Regular Order on LNG Exports, 4) Promote Affordability and Consumer Choice in Home Appliances, 5) Refill the Strategic Petroleum Reserve (SPR), 6) Modernize America’s nuclear stockpile, 7) Unleash Commercial Nuclear Power in the United States, 8) Strengthen Grid Reliability and Security, and 9) Streamline Permitting and Identify Undue Burdens on American Energy.

Source: Department of Energy

CFS Daily Brief: February 5, 2025

A few recent signs are starting to point to a slight thaw in the federal funding freeze. Today, the Environmental Protection Agency (EPA) resumed funding a handful of programs funded through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). Late last week, the Department of Transportation’s Maritime Administration (MARAD) re-released the NOFO for its marquee Port Infrastructure Development Program, which is also funded in part by the IIJA. Reading between the tea leaves, it appears that late Spring may be a busy time in the competitive funding space (assuming, of course, Congress can get a budget passed).

February 5, 2025 | 9:00 AM ET

The Environmental Protection Agency (EPA) has resumed funding for certain programs under the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). This decision follows the restraining order issued by U.S. District Judge Loren AliKhan, which blocked the Trump Administration's pause on funding. In an internal memo, Gregg Treml, the acting Chief Financial Officer of the EPA, announced that the agency's financial system would begin processing payments for programs that have obligated financial assistance. These programs include the State and Tribal Assistance Grants, Brownfields, and Superfund. However, it is important to note that some funding remains on hold, specifically the EPA’s $7 billion Solar for All program and the $5 billion climate pollution reduction program.

Source: Politico

CFS Daily Brief: February 4, 2025

Ten of the cabinet positions within the Trump 2.0 administration have made their way through the confirmation process. As they settle into their new roles, we are starting to gain insight into what changes they will make within their respective agencies to advance the President’s goals.

EPA Administrator Lee Zeldin released his “Powering the Great American Comeback Initiative” today, outlining the agency’s plan to balance environmental protection while fostering economic growth. This follows a similar tone that Interior Secretary Doug Burgum used in six new orders to DOI employees, directing them to “Unleash American Energy.”

Department of Energy Secretary Chris Wright is surprisingly quiet. Aside from publishing a court-mandated order, he has not released any new guidance or directives regarding the department's funding policies. Billions of dollars are potentially at stake as current grantees and future applicants await insight into how the department will distribute funds authorized by the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA/BIL).

February 4, 2025 | 4:30 PM ET

Doug Burgum has officially begun his tenure as the 55th Secretary of the Interior, marking the start of a new era focused on advancing American energy independence and ensuring the responsible stewardship of the nation’s public lands and resources. He met with department officials to outline his key priorities and announced six new orders as a part of the President’s directive to “Unleash American Energy.”

The six new orders are titled:

1. Addressing the National Energy Emergency

2. Unleashing American Energy

3. Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis

4. Announcing President Trump’s revocation of former Outer Continental Shelf Withdrawals

5. Achieving Prosperity Through Deregulation

6. Unleashing Alaska’s Extraordinary Resource Potential

Source: Department of Interior

February 4, 2025 | 11:00 AM ET

Today, EPA Administrator Lee Zeldin unveiled the Powering the Great American Comeback initiative, outlining the agency’s priorities under President Trump’s administration. This initiative focuses on five key pillars aimed at advancing environmental protection while fostering economic growth:

Clean Air, Land, and Water for Every American – Ensuring access to clean resources while supporting emergency response efforts.

Restore American Energy Dominance – Driving energy independence and lowering costs for families and businesses.

Permitting Reform, Cooperative Federalism, and Cross-Agency Partnership– Streamlining regulatory processes to boost investment and job creation.

Make the United States the Artificial Intelligence Capital of the World – Positioning the U.S. as the global hub for artificial intelligence development.

Protecting and Bringing Back American Auto Jobs – Strengthening domestic manufacturing and bringing back industry jobs.

Source: EPA

February 4, 2025 | 8:00 AM ET

Monday evening, U.S. District Judge Loren AliKhan issued a temporary restraining order blocking the Trump administration’s attempt to implement a widespread freeze of federal financial assistance. This extends the temporary stay that she ordered last week on behalf of advocacy groups receiving federal funding. In her decision, she stated that the executive branch attempted to “run roughshod over a 'bulwark of the Constitution' by interfering with Congress's appropriation of federal funds” and "attempted to wrest the power of the purse away from the only branch of government entitled to wield it."

Source: NPR

CFS Daily Brief: February 3, 2025

Another week is kicking off in the Capitol, and with it comes a new Executive Order—this one calling for the creation of a sovereign wealth fund for the United States. Subject to congressional approval, details of the fund will be ironed out over the next 12 months. These state-sponsored funds are typically used as a financial vehicle to make direct investments with government dollars. Investments in supply chain resiliency, nationally significant infrastructure projects, and even social media have been floated as possible portfolio items.

Elsewhere, there is increased discussion about the future of the Department of Education. Representative Thomas Massie (R-KY) has reintroduced a bill to abolish the agency by the end of 2026. It is unclear how the funding that is currently administered by the agency would be diverted and what mechanisms would be in place to get it into the hands of States and local school districts.

Sweeping changes to Department of Transportation grant, loan, and contract programs were announced via a new order from Secretary Sean Duffy. The document outlines new policy shifts from the department with a renewed focus on benefit-cost analysis for ALL projects, additional preference for projects being developed in Opportunity Zones, and project outcomes being tied to increased access to jobs, healthcare, and primarily benefitting families and communities.

February 3, 2025 | 1:55 PM ET

Following the closure of the USAID headquarters on Monday, Secretary of State Marco Rubio informed reporters that he will temporarily serve as the agency’s acting administrator. Lawmakers have joined protests outside the agency's headquarters, arguing that the executive branch does not possess the legal authority to dissolve federal agencies, which are established and funded by Congress. Although foreign assistance administered by USAID accounts for less than 1% of the federal budget, the Trump Administration aims to reduce wasteful spending by reevaluating current programs to align with the new administration's priorities.

Source: New York Times

February 3, 2025 | 8:57 AM ET

The Department of Energy published a Notice and Order via the OCED Exchange to notify all department employees, contractors, and grantees of the temporary restraining order released last Friday in response to the OMB memo. Key points in the Notice include:

1. Federal agencies cannot pause, freeze, impede, block, cancel, or terminate any awards or obligations on the basis of the OMB Memo or on the basis of the President’s recently issued Executive Orders.

2. This prohibition applies to all awards or obligations and also applies to future assistance (not just current or existing awards or obligations).

3. Agencies may exercise their own authority to pause awards or obligations, provided agencies do so purely based on their own discretion and provided the pause complies with all notice and procedural requirements in the award, agreement, or other instrument relating to such a pause.

4. Out of an abundance of caution, all federal agencies should comply with the above-referenced terms

Source: Department of Energy

CFS Weekend Brief: February 1-2, 2025

The U.S. Agency for International Development (USAID) found itself under scrutiny from the Trump Administration this weekend. The agency's website has gone dark amid a foreign aid funding freeze, which has halted most of its programs and put dozens of senior officials on leave. Some news outlets have hinted that the administration is considering absorbing the agency into the State Department, which it had planned to do in 2017, or substantially reducing the scope and scale of its activities. This bout between agency and administration officials may set the tone for how the White House plans to restructure federal departments deemed to be at odds with administration goals.

CFS Daily Brief: January 31, 2025

A week of questions and ambiguity has come to an end with U.S. District Chief Judge John McConnell issuing a temporary restraining order to block the Trump administration’s freeze of federal aid earlier in the week. While a separate but similar ruling was issued on Tuesday evening, that order was set to expire on February 3. The new ruling will extend until Judge McConnell can consider the state’s request for a longer injunction, which is anticipated to be filed.

This points to a foreseeable legal battle that may clarify the President’s executive authority and Congress’ “power of the purse.” This could have vast implications for how the remaining funds of 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”) are able to be accessed.

January 31, 2025 | 4:45 PM ET

U.S. District Chief Judge John McConnell has granted the request for a temporary restraining order against the Trump administration's Monday night memo, which ordered a wide-sweeping pause of federal funding. The guidance was challenged by 22 states and the District of Columbia, who argued that the memo issued by the Office of Management and Budget violated Federal law and the Constitution.

Source: The Hill

January 31, 2025 | 9:00 AM

On Thursday night, Doug Burgum, the former governor of North Dakota, was confirmed as the Secretary of the Interior with a 79-18 vote. He will manage federal lands and natural resources, focusing on expanding fossil fuel production and reducing support of clean energy initiatives from the previous administration, particularly offshore wind power development.

Source: Politico

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