Press Release: 2025-01-29

Trump administration orders federal funding freeze on all public loans, grants and other aid

 

JANUARY 28, 2025

The Trump Administration has announced a temporary suspension of federal grants, loans and other financial assistance linked to recent executive orders. This decision, which will take effect by 5 p.m. today, impacts a wide range of programs across the nation. Providers can view the decision here. 

 The Providers’ Council’s national partner, the National Council of Nonprofits, is filing a motion for a Temporary Restraining Order in the U.S. District Court for the District of Columbia today to block the White House Office of Management and Budget from pausing all federal agency grants and loans. NCN is filing together with public health and small business leaders, and it will be represented in court by Democracy Forward. 

This freeze raises critical constitutional questions, and other legal challenges are anticipated. Under the directive from the Office of Management and Budget (OMB), federal agencies are required to pause activities related to disbursing financial assistance, as allowed by existing laws. This includes funding for various programs such as foreign aid, nonprofit initiatives and DEI efforts. While Congress has authorized these funds, the Trump administration’s decision to delay their distribution is likely to undergo legal review.  

Critical programs like Social Security, Medicare and direct payments to individuals are excluded from this freeze. However, funding for community programs, research and nonprofit projects may face delays. Federal agencies must provide their reviews to the OMB by February 10, at which point decisions on the paused funding will be made. 

Please reach out to Caroline O’Neill if your organization will be impacted.