Here's the text of the OMB memo:
January 27, 2025
M-25-13
MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
FROM: Matthew J. Vaeth, Acting Director, Office of Management and Budget SUBJECT:
Temporary Pause of Agency Grant, Loan, and Other Financial Assistance
Programs
The American people elected Donald J. Trump to be President of the United States and gave him a
mandate to increase the impact of every federal taxpayer dollar. In Fiscal Year 2024, of the nearly
$10 trillion that the Federal Government spent, more than $3 trillion was Federal financial
assistance, such as grants and loans. Career and political appointees in the Executive Branch have
a duty to align Federal spending and action with the will of the American people as expressed
through Presidential priorities. Financial assistance should be dedicated to advancing
Administration priorities, focusing taxpayer dollars to advance a stronger and safer America,
eliminating the financial burden of inflation for citizens, unleashing American energy and
manufacturing, ending “wokeness” and the weaponization of government, promoting efficiency in
government, and Making America Healthy Again. The use of Federal resources to advance Marxist
equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer
dollars that does not improve the day-to-day lives of those we serve.
This memorandum requires Federal agencies to identify and review all Federal financial assistance1
programs and supporting activities consistent with the President’s policies and requirements.2
For example, during the initial days of his Administration, President Donald J. Trump issued a
series of executive orders to protect the American people and safeguard valuable taxpayer
resources, including Protecting the American People Against Invasion (Jan. 20, 2025), Reevaluating
and Realigning United States Foreign Aid (Jan. 20, 2025), Putting America First in International
Environmental Agreements (Jan. 20, 2025), Unleashing American Energy (Jan. 20, 2025), Ending
Radical and Wasteful Government DEI Programs and Preferencing (Jan. 20,2025),
Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal
Government (Jan. 20, 2025), and Enforcing the Hyde Amendment (Jan. 24, 2025). These executive
orders ensure that Federal funds are used to support hardworking American families.
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. The temporary pause will become effective on January 28, 2025, at 5:00 PM. Even before
completing their comprehensive analysis, Federal agencies must immediately identify any legally
mandated actions or deadlines for assistance programs arising while the pause remains in effect.
Federal agencies must report this information to OMB along with an analysis of the requirement. OMB
also directs Federal agencies to pause all activities associated with open NOFOs, such as
conducting merit review panels.
No later than February 10, 2025, agencies shall submit to OMB detailed information on any programs,
projects or activities subject to this pause. 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 your 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. To the extent required by law, Federal agencies may continue taking certain
administrative actions, such as closeout of Federal awards (2 CFR 200.344), or recording
obligations expressly required by law.
Additionally, agencies must, for each Federal financial assistance program: (i) assign
responsibility and oversight to a senior political appointee to ensure Federal financial assistance
conforms to Administration priorities; (ii) 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, and; (iii) ensure adequate oversight
of Federal financial assistance programs and initiate investigations when warranted to identify
underperforming recipients, and address identified issues up to and including
cancellation of awards.
1 2 CFR 200.1 defines Federal financial assistance to mean “[a]ssistance that recipients or
subrecipients receive or administer” in various forms, but this term does not include assistance
provided directly to individuals. For the purposes of this memorandum, Federal financial assistance
includes: (i) all forms of assistance listed in paragraphs
(1) and (2) of the definition of this term at 2 CFR 200.1; and (ii) assistance received or
administered by recipients or subrecipients of any type except for assistance received directly by
individuals.
2 Nothing in this memo should be construed to impact Medicare or Social Security benefits.