Updates on OMB Pause Memo

January 28, 2025

The Office of Management and Budget (OMB) released federal memorandum M-25-13, late on Monday, January 27, 2025 (the OMB Memo). The OMB Memo directed federal agencies to “temporarily pause all activities related to obligation or disbursement” of federal financial assistance that may be implicated by the recently issued executive orders (EOs). The OMB Memo included an attachment titled “frozen funds” which listed the federal programs that agencies are directed to collect information on to determine which obligations / disbursements fall within the scope of the recently issued EOs.

OMB has since issued a Fact Sheet which clarifies that the “temporary pause” is “not an impoundment” action under the Impoundment Control Act of 1974 (ICA). The Fact Sheet also explicitly excludes programs from the pause that provide direct benefits to Americans, and notes that funds for “Head Start, rental assistance and other similar programs will not be paused.” Federal agencies will continue to review programs that implicate the EOs and are directed to consult with OMB to begin unwinding policies deemed objectionable under the EOs to avoid a pause in payments.  

The pause was intended to begin Tuesday, January 28, 2025 at 5PM, however, a federal judge temporarily blocked the funding pause after a lawsuit was filed. 

A forthcoming CAPLAW article will provide further information on the ICA and other tools the new administration may use to direct federal spending and the regulatory process. CAPLAW will continue monitoring for further developments and will update the Network as soon as possible. 

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