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Washington State Reassures Partners After Federal Funding Pause, Restart

In an update Wednesday afternoon, Washington State Department of Commerce Director Joe Nguyễn sought to reassure the state’s partners that, despite the ordered funding pause earlier in the week, funds from the federal government were “flowing again.”

“We can confirm the money is flowing again after the Trump administration rescinded the freeze,” Nguyễn’s update said.“If you have federal funding from Commerce, please continue your programs and services as usual. We will reach out if there are future actions or orders that impact your programs.”

The update went on to assure partners that there was “no current impact to state-funded programs.”

Nguyễn’s update was sent in response to the events of Monday and Tuesday. On Monday evening, 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 memorandum created uncertainty among many federal grantees, causing many in the broadband industry to wonder how the pause would affect funds from the Broadband Equity, Access, and Deployment (BEAD) Program and other federal programs.

On Tuesday afternoon, Judge Loren AliKhan of the United States District Court in Washington, D.C. blocked the memorandum. On Wednesday, the OMB rescinded the original memorandum: “OMB Memorandum M-25-13 is rescinded.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.”

The Washington State Department of Commerce update was a heartening sign for those concerned about the effect of the federal funding pause on broadband programs. A state broadband director told Telecompetitor today that — on a phone call with other state broadband directors yesterday — “everyone was on edge.” Referring to the new administration, the director added, “We know changes are coming.”

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