The Trump administration rescinded the original memo outlining its freeze for some federal agency grant and loan programs while noting the funding pauses spelled out in previous executive orders remain in effect.
Rescinded Memo: The Office of Management and Budget rescission applies to a memo issued to the heads of executive departments and agencies on Monday that said federal agencies must temporarily pause activities related to obligation or disbursement of federal financial assistance.
Small-Business Exemption: A subsequent OMB memo issued Tuesday said the funding freeze does not apply to funds for small businesses, farmers, and similar programs, noting the pause is limited to programs and activities affected by President Donald’s Trump’s executive orders.
ICBA Review: ICBA is reviewing the potential impact of the pause on federal programs and working to ensure programs involving community banks, including the Small Business Administration’s 7(a) and 504 programs, are unaffected.
Clarification: White House Press Secretary Karoline Leavitt posted that the latest memo is not a rescission of the federal funding freeze, but a rescission of the original OMB memo. “The president's EO's on federal funding remain in full force and effect, and will be rigorously implemented,” she said.
More: The pause is limited to programs and activities mentioned in the following executive orders:
Protecting the American People Against Invasion.
Reevaluating and Realigning United States Foreign Aid.
Putting America First in International Environmental Agreements.
Unleashing American Energy.
Ending Radical and Wasteful Government DEI Programs and Preferencing.
Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government.
Enforcing the Hyde Amendment.
Court Block: U.S. District Judge Loren AliKhan temporarily blocked the freeze on Tuesday afternoon. As reported by the Associated Press, the administrative stay pauses the freeze until 5 p.m. Monday, Feb. 3.
