Earlier today, the Trump administration rescinded its OMB directive implementing a sweeping freeze on
federal grants and loans.
The decision came after U.S. District Court Judge Loren L. AliKhan temporarily blocked the Trump
administration from implementing the order in response to a legal challenge from a network of nonprofit
organizations. This order, which only applies to existing funds that were already slated to be dispersed, is
set to expire on February 3 at 5 p.m. AliKhan is expected to render a more lasting decision during a hearing
scheduled for February 3. A separate lawsuit has been filed by a group of 22 states, including Wisconsin, and
the District of Columbia also seeking to block the freeze. At this moment, it’s unclear how far the lawsuits
will proceed.
In the meantime, the administration says it will continue its review of federal spending.
In addition, we agree with the following recommendation from NASH (the National Association of Higher
Education Systems:
“Given uncertainty about next steps, NASH recommends that federal grantees make every effort to stay up
to date on drawing down federal funds in accordance with applicable laws, regulations, and grant terms. In
addition, recipients and subrecipients should consider looking closely at the terms and conditions of their
award agreements, agency-specific implementations of the Uniform Guidance (including appeal procedures
for grant disputes, to the extent the agency has them), and the authorizing statute and any implementing
regulations for the programs they are working on to evaluate their options if the government suspends or
terminates their awards in the future.