(Updated as of 1/30/2025 at 4:45 PM - will be updated as we learn more)
White House OMB has rescinded the order discussed below.
Although the order from the Office of Management and Budget (OMB) freezing spending on federal grants was withdrawn, this action did not withdraw related Executive Orders from the White House seeking to impose more targeted federal funding restrictions.
ACEC National would like to hear what’s happening in the states. If you know of projects that are being put on pause, please contact Abbie Goodman
If you have any ongoing federally funded projects, your clients may reach out to you as they learn more.
ACEC National is reaching out to federal agencies to get more information about how they plan to restart projects or make other changes We will share more information as it becomes available. See below for a timeline, with newest information at the top of the chart.
Resources and News (Newest items first)
| News from ACEC National Jan. 30, 4 pm |
Monitoring the Trump White House’s Impact on Engineering Bookmark this page to keep up to date on announcements, executive actions and decisions from the Trump White House that directly affect America's engineering and design services industry. https://www.acec.org/advocacy/monitoring-the-trump-white-houses-impact-on-engineering/ |
| New from ACEC National Jan. 29, 2 pm |
ACEC has been closely monitoring the executive actions coming out of Washington, including the Trump Administration’s temporary halt on all federal financial assistance, disbursements and grant awards. The Administration’s action, which came in the form of a memo released by the Office of Management and Budget (OMB) on Monday, was blocked last night by a federal district judge, and we learned earlier today that Acting White House Budget Director Matthew Vaeth has officially rescinded the memo. Media outlets cite unnamed White House sources indicating that this move was made “to end the confusion” over the apparent blanket freeze on a broad array of federal programs. While the OMB directive was withdrawn, this action did not withdraw related Executive Orders from the White House seeking to impose more targeted federal funding restrictions. Agency leaders may also still be empowered to hit the pause button on certain federal programs, and the broad list of water, transportation and other programs highlighted in the OMB memo and my letter to you yesterday may provide an indication of the direction this effort is headed. Because there remains a great deal of uncertainty ACEC will continue to do outreach to federal agencies, to our Capitol Hill allies and to stakeholders to gather information and advocate for the programs that support the markets we serve. ACEC is setting up an online resource center on ACEC’s website that will provide easy access to information from the White House, from Capitol Hill, and resources generated by ACEC on this issue. We’ll circulate that link to ACEC members as soon as it's ready. |
| Media outlets are reporting this. |
News outlets are reporting that the Office of Management and Budget (OMB) has withdrawn the memo released earlier this week that sought to impose a pause in federal grants and funding, which may effectively end this effort, at least for the time being. This is encouraging news, ACEC has continued to do outreach to agencies, to Capitol Hill and to stakeholder allies to gather information. To the extent that this might return, we’re also in the process of setting up a resource center on ACEC’s website that you can we will send our members to for information from the White House, from Capitol Hill, and resources generated by ACEC. |
| Message from ACEC National received early morning on 1/29/2025 |
UPDATE: As should below, on January 28 before 5 pm, a Federal judge issued an order to pause the pause until Feb. 3rd for further review. For now, there are more questions than answers, and it's our understanding that agencies have been instructed to hold until further guidance from the White House. In the meantime, look for this "freeze" to go through the courts, likely up to the Supreme Court. Also, Members of Congress are contacting the White House as they are hearing from their constituents. Bottom-line, it remains fluid and we'll do our best to keep you updated. |
| AP New: Federal judge temporarily blocks Trump administration freeze on federal grants and loans just before 5 pm on 1/28/2025 | A federal judge has temporarily blocked a Trump administration freeze on federal grants and loans that could total trillions of dollars and cause disruptions in health care research, education programs, and other initiatives.
The order from U.S. District Judge Loren L. AliKhan came minutes before the funding freeze was scheduled to go into effect. It lasts until Monday afternoon and applies only to existing programs.
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Update from ACEC's Steve Hall on 1/28/2025, afternoon OMB Disbursement Memo - same memo as above OMB Disbursements Memo Clarification and FAQ
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On January 27, the White House Office of Management and Budget (OMB) released a memo ordering a temporary freeze on all federal financial assistance, disbursements, and grant awards. The memo excludes Social Security, Medicare, and direct assistance to individuals. In response to a flurry of questions and criticism, OMB provided a short response memo and FAQ. Both documents are attached. We are continuing to review the memo and related resources, and we have also reached out to several departments and agencies for information on how they will interpret and implement the order. As you can imagine, there is a great deal of uncertainty around how this will play out in the coming days and weeks. According to the memo, the pause is intended to provide time for agencies to review their existing programs and grants for consistency with the Executive Orders and other policy priorities announced last week. The memo states: “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. Timeline The temporary pause goes into effect today, Tuesday, January 28, 2025, at 5:00 p.m. Agencies are directed to submit to OMB detailed information on any programs, projects, or activities subject to this pause by Monday, February 10, 2025. Next Steps The memo provides that “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 the 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. In addition, agencies are directed to
According to a follow-up document sent to agencies, the review includes these questions:
These are directives under the Executive Orders on Unleashing American Energy and Ending Illegal Discrimination and Restoring Merit-Based Opportunity. Impacted Programs of Interest Based on our current understanding, here is a sample list of federal programs of interest that may be subject to temporary suspension and review. We continue to seek confirmation: Transportation
(Note that EV charging stations, reconnecting communities, and other grants explicitly referenced in the EO are at risk of being eliminated or have funding withheld beyond a temporary pause.) Energy
Environment
(Note that EPA grants or loans that provide specific assistance to disadvantaged communities or for environmental justice are potentially at risk of being eliminated or have funding withheld beyond a temporary pause.) Federal Acquisition
Conclusion: The memo is very broad and has wide-ranging impacts. Member firms may receive temporary stop-work orders from federal agency clients and from state/local grant recipients until they complete their program reviews and/or receive additional implementation guidance. Some announced infrastructure grant awards that are not yet obligated (i.e. under federal grant agreement) may be withdrawn. We will continue to circulate information as it becomes available, and please do not hesitate to contact me with any questions. |
| Instructions to Federal Agencies | Instructions for Federal Financial Assistance Program Analysis in Support of M-25-13 |
| Massachusetts Actions on 1/28/2025 |
State House News Service, JAN. 28, 2025.....[Coverage Developing]Policymakers, nonprofits and others who rely on federal funding are scrambling to unpack the significance of a Trump administration freeze on most federal grants and loans, a shift that Gov. Maura Healey warned will be "devastating" for Massachusetts. The interim head of the federal Office of Management and Budget on Monday wrote to the heads of federal executive departments and agencies instructing them to "temporarily pause all activities related to obligation or disbursement of all Federal financial assistance" while undertaking a review of their funding distributions designed to align spending with President Donald Trump's political and ideological priorities. The pause will take effect at 5 p.m. Tuesday, according to OMB, though it already faces legal challenges already. A group of Democratic attorneys general, including Massachusetts Attorney General Andrea Campbell, said Tuesday afternoon they would sue and ask a court to halt enforcement of the freeze. "Congress controls the pursestrings, and the executive branch cannot decide to halt funding just because they don't like how Congress chooses to spend it," Campbell said at a virtual press conference alongside several other AGs. Reuters also reported that groups representing nonprofits, public health workers and small businesses sued the Trump administration earlier Tuesday. If the pause takes effect, it could carry major implications for Massachusetts. Federal aid is always a big source of budget revenue for state government, and state records show Massachusetts expects to receive more than $15 billion in federal reimbursements in fiscal year 2025. Federal money also flows to nonprofits, local governments and many other entities in the Bay State. Healey said she worries the pause will impact funding for a whole host of services, ranging from child care to road maintenance to energy affordability. "It's devastating, and it touches all aspects, which is why I don't understand this," Healey told reporters at the State House. "Donald Trump ran on a promise to lower costs. All he's done is offer proposals and take actions that are going to raise costs for people, raise costs for businesses and hurt our economies." It was not immediately clear how much money headed to Massachusetts might be affected, or how long the review and "temporary pause" might last. Campbell said Massachusetts on Monday tried to draw almost $40 million in Medicaid funding "and haven't received the payment yet." "This is just one potential funding stream that could be impacted by this reckless order," she said. While federal aid is governed in part by Congressional appropriations and longstanding funding formulas, OMB Acting Director Matthew Vaeth said the administration wants to ensure trillions of dollars the federal government spends in grants and loans match Trump's goals. "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," Vaeth wrote in the memo, a copy of which was published by The New York Times. "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." Medicare and Social Security benefits would not be impacted by the pause, the memo said. Federal offices and agencies must identify "any legally mandated actions or deadlines for assistance programs arising while the pause remains in effect" and report that information to OMB, Vaeth said. They are also required to submit detailed information about affected spending activity by Feb. 10. Vaeth instructed agencies to review pending federal financial assistance announcements to ensure they comply with Trump's priorities. To the extent allowed by law, agencies could modify unpublished aid announcements, withdraw already-announced funding or cancel awards "that are in conflict with Administration priorities" under the OMB memo. The administration also ordered agencies to give a "senior political appointee" responsibility to ensure each federal aid program "conforms to Administration priorities," and to investigate programs to "identify underperforming recipients." "OMB may grant exceptions allowing Federal agencies to issue new awards or take other actions on a case-by-case basis," Vaeth wrote. "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." Officials and budget experts in Massachusetts, where Democrats currently hold all congressional seats and every constitutional office, have been concerned about the potential loss of federal funds under Trump. "The order that came out from President Trump last night will have the effect of cutting off federal funding to our states, and that's federal funding that's going to help seniors heat their homes, that's going to help people pay for child care and important programs that parents and families need," Healey said. "It's going to cut off funding for food, for health care, transportation, important infrastructure projects in our state." The Associated Industries of Massachusetts, one of the state's largest business groups, said in an alert to members just before 1:30 p.m. urging them to get in touch with the organization to share concerns. "Many Massachusetts companies receive federal grants and loans for a variety of purposes. Some of those companies could now face issues making payroll at the end of the month," AIM wrote in its alert. "AIM is working with members of the Massachusetts Congressional delegation to determine the moratorium's potential effect on employers." Healey did not say if she would file legislation to put state dollars to work to cover any lost federal funding, telling reporters that "we've got to take everything a step at a time." Asked about options to keep payrolls flowing amid a federal funding pause, Healey replied, "We've got to see what happens in the courts." "This is not just a blue state issue. This is a blue state, red state, every state issue," she said. "All of our states rely on this federal funding, so my hope is that a court will quickly put an end to his overreach of executive authority. He doesn't have the power to do this, and more than that, it's really, really harmful." Congressman Richard Neal added his voice to the chorus of criticism, saying his office heard concerns from "local governments, school superintendents, veterans organizations, and others." "Our message is clear: we hear you, we're here for you, and we will not let this stand," Neal wrote on social media. "Congress oversees the public purse, not the President." [Ella Adams and Sam Doran contributed reporting.] -END- |
| Federal Funding Pause – What We Know and Questions We Have | from ACEC/MA Affiliate Member CLA |
| White House Budget Office Orders Pause in All Federal Loans and Grants |
White House Budget Office Orders Pause in All Federal Loans and Grants - 1/27/2025 NYT Gift Article updated 1/28/2025 |
| Roll Call | Trump White House orders freeze on federal grants, loans - Roll Call |
| Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs | Benton Institute for Broadband & Society | |
| Excerpt from OMB memo: |
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. 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. |
| Beginning of the issue on January 27, 2025 at night. |
The White House budget office had ordered a temporary freeze on all federal grants and loans, a move that could impact trillions in government spending and halt public programs. The pause, set to begin Tuesday, January 28, 2025, at 5 pm, (NOW RESCINDED) excludes Social Security, Medicare, and direct individual assistance. Federal agencies were expected to submit detailed information to OMB by February 10, 2025. What to Know:
Federal agencies will have to submit documentation of their programs and undergo a review of all their awards by the Office of Management and Budget (OMB). Programs/Awards must be in alignment with President Trump's issued EOs. |
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