UPDATED: January 29, 1:25 p.m. ET
The White House Office of Management and Budget (OMB) has rescinded a memorandum that would have put a pause on all federal grant funds.
According to a memorandum obtained by CNBC, OMB Director Matthew Vaeth issued a new memorandum today that said, “OMB Memorandum M-25-13 is rescinded. If you have any questions about implementing the President’s Executive Orders, please contact your agency General Counsel.”
UPDATED: January 28, 6 p.m. ET
Judge Loren AliKhan of the United States District Court in Washington, D.C. has blocked a memorandum issued by the White House Office of Management and Budget intended to pause federal grant funds. The pause would affect grant funds from, among many other federal programs, the Broadband Equity, Access, and Deployment (BEAD) Program.
The decision was made in response to a lawsuit filed earlier today, which said that the memorandum “will have a devastating impact on hundreds of thousands of grant recipients who depend on the inflow of grant money (money already obligated and already awarded) to fulfill their missions, pay their employees, pay their rent—and, indeed, improve the day-to-day lives of the many people they work so hard to serve.”
Original story follows: January 28, 1:45 p.m. ET
Yesterday, the White House Office of Management and Budget (OMB) issued a memorandum “for heads of executive departments and agencies” ordering a pause on all federal grant funds. The paused grants include funds from the Infrastructure Investment and Jobs Act (IIJA) — also known as the Bipartisan Infrastructure Law — part of which is the Broadband Equity, Access, and Deployment (BEAD) Program.
The memorandum stated that “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.”
“This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements.”
Reaction from Congressional Democrats to the federal grant pause was swift. Senate Democratic Leader Chuck Schumer (D-NY) said in a statement, “Congress approved these investments and they are not optional; they are the law. These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities.”
The federal grant pause comes as the BEAD Program has reached several milestones. All 56 states’ and territories’ initial proposals were approved as of November, and just weeks ago the first three states — Louisiana, Delaware, and Nevada — received approval of their final proposal for BEAD funding from the National Telecommunications and Information Administration (NTIA).
This is a developing story. Telecompetitor will provide more details as they become available.
