Questions Surround Pause of Federal Grants, Loans
Questions continue to surround the Office of Management and Budget’s pause on disbursement of billions in federal grants and loans. Reports indicate that the OMB has pulled back the original memo, but that the review to ensure that the spending is consistent with the Trump Administration priorities will continue. The move appears to negate the need for the federal court hearing scheduled for Monday.
The White House did provide a fact sheet on the order, which can be found here. It focuses the pause on any funding affected by any of the Executive Orders issues since the inauguration last week, which can be found here. However, any township expecting funding under the Inflation Reduction Act of 2022 or the Infrastructure Investment and Jobs Act should note that there is a separate, earlier OMB memorandum requiring agencies to pause disbursements of funds under this act pending review by the Trump Administration. The earlier memo can be found here.
It is prudent for townships to ensure that any federal grant or loans that your township may be expecting be closely monitored, particularly before spending township funds if they are expected to be reimbursed by a federal grant.