The memorandum’s scope encompassed various federal financial assistance programs, including grants and loans related to foreign aid, non-governmental organizations, diversity, equity, and inclusion (DEI) initiatives, gender ideology, and environmental policies associated with the Green New Deal. Agencies were instructed to submit detailed reports to the OMB by February 10, 2025, outlining their financial assistance programs to facilitate this review.
In response to the memorandum, the Oklahoma Corporation Commission (OCC) engaged with the U.S. Department of the Interior to assess the potential impact on its $102 million grant application under the Infrastructure Investment and Jobs Act (IIJA). This grant was intended for plugging abandoned oil and gas wells in Oklahoma. The OCC submitted its application in December 2024 and was in the process of selecting a third-party administrator to manage the anticipated funds. The pause introduced uncertainty regarding the continuation of this program.
The implementation of the funding pause led to legal challenges. A federal judge in Washington, D.C., temporarily blocked the administration's plan, citing potential overreach of executive authority. Similarly, a judge in Rhode Island issued a temporary restraining order in response to a lawsuit filed by nearly two dozen Democratic-led states. These legal interventions underscored concerns about the constitutional implications of the funding pause and its potential disruption to essential public services.
Subsequently, on January 29, 2025, the OMB rescinded Memorandum M-25-13 in light of the temporary stay. However, the White House indicated that this rescission did not equate to a reversal of the federal funding freeze, suggesting that efforts to align federal financial assistance with the administration's priorities would continue through other means.
The situation remains dynamic, with ongoing legal proceedings and administrative actions influencing the status of federal financial assistance programs. Entities reliant on federal funding are advised to monitor developments closely and consult with relevant federal agencies to understand the implications for their specific programs.
