On February 3, 2025, U.S. District Judge Loren L. AliKhan issued a second temporary restraining order (TRO) concerning Memorandum M-25-13. This memorandum, released by the Office of Management and Budget (OMB) on January 27, called for a temporary halt on federal financial assistance programs, including grants, loans, and other forms of financial support.
Judge AliKhan granted a TRO imposing a ban on the implementation of, or reinstatement under a different name the directive in OMB Memorandum M-25-13 with respect to the disbursement of federal funds. This second TRO was granted just three days after Judge John J. McConnell, Jr., United States District Court for the District of Rhode Island, issued a TRO regarding the implementation of OMB Memo M-25-13. Judge McConnell’s order stated that “Defendants1 shall not pause, freeze, impede, block, cancel, or terminate Defendants’ compliance with awards and obligations to provide federal financial assistance to the States, and Defendants shall not impede the States’ access to such awards and obligations, except on the basis of the applicable authorizing statutes, regulations, and terms.”
On the morning of February 3, Judge AliKhan held a hearing on a motion filed for a TRO. The initial complaint was filed by “several coalitions of nonprofit organizations.” The nonprofit organizations alleged the OMB Memorandum M-25-13 “was arbitrary and capricious, violated the First Amendment of the United States Constitution, and exceeded OMB’s statutory authority.”
The TRO granted by Judge AliKhan orders that:
- Defendants are enjoined from implementing, giving effect to, or reinstating under a different name the directives in OMB Memorandum M-25-13 with respect to the disbursement of Federal funds under all open awards.
- Defendants must provide written notice of the court’s temporary restraining order to all agencies to which OMB Memorandum M-25-13 was addressed…instruct[ing] those agencies that they may not take any steps to implement, give effect to, or reinstate under a different name the directives in OMB Memorandum M-25-13 with respect to the disbursement of Federal Funds under all open awards. It shall also instruct those agencies to release any disbursements on open awards that were paused due to OMB Memorandum M-25-13.
- Defendants shall file a status report on or before February 7, 2025, apprising the court of the status of its compliance with this Order.
- The parties [Defendants and Plaintiffs] shall meet and confer and file a joint status report proposing a preliminary injunction briefing schedule on or before February 7, 2025.
How Forvis Mazars Can Help
Our Grants Management Services team is staying apprised of the pause in federal funding. We’ll be publishing alerts as the situation continues to evolve. Understanding the intricacies of the funding helps equip you with the knowledge and confidence to make informed decisions, even when faced with uncertainty. By grasping the intricacies involved, you can navigate challenges more effectively and feel more secure in your choices. This deeper comprehension not only empowers you to tackle current issues but also prepares you for future developments so you can remain adaptable and resilient in an ever-evolving landscape. If you have questions or need assistance, please reach out to a professional at Forvis Mazars.
- 1The defendants include Donald Trump, in his official capacity as President of the United States; the U.S. Office of Management and Budget; Matthew J. Vaeth, in his official capacity as Acting Director of the U.S. Office of Management and Budget; the U.S. Department of the Treasury; Scott Bessent, in his official capacity as Secretary of the Treasury; Patricia Collins, in her official capacity as Treasurer of the U.S.; the U.S. Department of Health and Human Services; Dorothy A. Fink, M.D., in her official capacity as Acting Secretary of Health and Human Services; the U.S. Department of Education; Denise Carter, in her official capacity as Acting Secretary of Education; the U.S. Federal Emergency Management Agency; Cameron Hamilton, in his official capacity as Acting Administrator of the U.S. Federal Emergency Management Agency; the U.S. Department of Transportation; Judith Kaleta, in her official capacity as Acting Secretary of Transportation; the U.S. Department of Labor; Vince Micone, in his official capacity as Acting Secretary of Labor; the U.S. Department of Energy; Ingrid Kolb, in her official capacity as Acting Secretary of the U.S. Department of Energy; the U.S. Environmental Protection Agency; James Payne, in his official capacity as Acting Administrator of the U.S. Environmental Protection Agency; the U.S. Department of Homeland Security; Kristi Noem, in her official capacity as Secretary of the U.S. Department of Homeland Security; the U.S. Department of Justice; James R. McHenry III, in his official capacity as Acting Attorney General of the U.S. Department of Justice; the National Science Foundation; and Dr. Sethuraman Panchanathan, in his official capacity as Director of the National Science Foundation.