Photo credit: www.govexec.com

Federal Grants and Assistance Restart Following Rescission of Controversial Order

Federal agencies have resumed their normal operations concerning federal grants and assistance following a decision by the Trump administration to withdraw a contentious order that had previously put these processes on hold.

The recent memorandum, succinct in nature, facilitates the continuation of routine agency functions, alleviating the uncertainty that the initial directive had caused and helping to restore order within government operations. This shift came in the wake of a temporary injunction issued by a federal judge, which blocked the original directive from the Office of Management and Budget (OMB) from being implemented.

In the brief guidance, acting OMB Director Matthew Vaeth indicated, “OMB Memorandum M-25-13 is rescinded.” He further advised agencies to reach out to their general counsels for any queries related to the execution of the president’s executive orders.

The initial directive to freeze federal grants, loans, and other assistance—except for direct aid to individuals—precipitated considerable confusion within agencies. Employees were left in the dark regarding whether their programs would be affected, and despite the memo suggesting limited exceptions, officials claimed the actual scope of its impact would be narrower. Nevertheless, the directive instigated a rush for clarification among agency staff and federal grantees, many of whom were preparing for a potential cessation of federal funding.

This situation led to important legal questions regarding the president’s authority to suspend sections of congressionally allocated funding for policy reasons, an action generally restricted by the 1974 Impoundment Control Act. Groups adversely affected by the order quickly pursued legal action, leading to a federal judge temporarily halting the directive until at least February 3 while the case unfolded. Additionally, the Government Accountability Office was investigating the legality of the president’s actions in this matter.

Senator Richard Blumenthal, a Democrat from Connecticut, commented on the rescission, stating, “This one line walk back fortunately saves America from political disaster.”

However, Senator Patty Murray from Washington, who serves as the top Democrat on the Senate Appropriations Committee, pointed out that the dispute over funding is ongoing. She criticized the Trump administration for causing substantial disruption to millions of people within a mere 48 hours and mentioned that some of Trump’s more targeted freezes—pertaining to foreign aid, infrastructure, and climate spending—are still in effect. Furthermore, Russ Vought, the suggested nominee for a more permanent leadership role at the OMB, has indicated he may disregard the impoundment law altogether.

Democratic leaders have expressed skepticism that this rescission will be permanent. “If they did it once, they can do it again,” Blumenthal warned.

In response to the developments, White House Press Secretary Karoline Leavitt clarified that the revocation aimed to reduce confusion stemming from the judge’s order. She emphasized that “the president’s executive orders on federal funding remain in full force and effect, and will be rigorously implemented.”

Source
www.govexec.com