OMB Pauses Federal Financial Assistance
[Edit on 1/29/2025 at 2:45 pm ET]
HUD has sent the following email to executive directors of PHAs:
January 29, 2025
Dear Executive Directors,
This afternoon, the US Office of Management and Budget, on behalf of President Trump, rescinded the memo that instructed all federal departments to temporarily pause all activities related to the obligation and disbursement of federal financial assistance. The pause has ended and access to LOCCS is restored.
Thank you for your continued work to administer HUD programs that improve the day-to-day lives of those we serve.
[Edit on 1/29/2025 at 2:12 pm ET]
In a social media post, a representative of the White House has written the following:
“This is NOT a rescission of the federal funding freeze.
It is simply a rescission of the OMB memo.
Why? To end any confusion created by the court’s injunction.
The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”
At this time, NAHRO staff is examining the implications of this.
[Edit on 1/29/2025 at 1:17 ET]
NAHRO has heard from its members that the eLOCCS system is now accessible.
Additionally, news outlets appear to be reporting that the Office of Management and Budget have rescinded the Federal funding assistance freeze.
[Edit on 1/29/2025 at 10:22 ET]
As of this morning, NAHRO staff have heard that eLOCCS (a system used to access certain HUD funding) remains inaccessible. If any NAHRO member is able to access it, please let us know.
[Edit on 1/28/2025 at 7:06 pm ET]
News outlets are reporting that a federal judge has temporarily blocked the order pausing federal financial assistance. The order will be temporarily blocked until Feb. 3.
[Edit on 1/28/2025 at 5:31 pm ET]
It appears that HUD has confirmed that tenant-based rental assistance and project-based rental assistance will be excluded from the Federal rental assistance pause.
HUD’s Office of Public and Indian Housing sent the following email:
January 28, 2025
Dear Executive Directors,
On January 27, the US Office of Management and Budget, on behalf of President Trump, instructed all federal departments to temporarily pause all activities related to the obligation and disbursement of federal financial assistance.
HUD is currently reviewing each grant program in accordance with the guidance provided to agencies. The Tenant-Based Rental Assistance Program is no longer subject to the pause. Public housing agencies (PHAs) will receive the February tenant-based rental assistance payments as scheduled. All other grants to PHAs are paused until further notice, and users do not have access to LOCCS.
I will let you know when I receive more information as HUD complies with this order.
Additionally, HUD’s Office of Housing sent this email:
HUD Multifamily Project-Based Rental Assistance Programs Remain Operational
The U.S. Department of Housing and Urban Development (HUD) has confirmed with the Office of Management and Budget (OMB) that all rental assistance payments for all Multifamily project-based rental assistance programs remain operational and are not subject to the pause in federal grants and loans outlined in OMB’s memo to federal agencies yesterday. HUD’s Office of Multifamily Housing Programs will continue to meet its project-based rental assistance financial obligations to owners and tenants participating in these programs.
We thank all of NAHRO’s members who forwarded us these emails.
[Edit on 1/28/2025 at 4:30 pm ET]
The National Association of Housing and Redevelopment Officials has sent a letter to HUD on OMB’s memorandum on pausing Federal financial assistance. The letter asks for the following:
- Federal rental assistance programs including–but are not limited to–the Housing Choice Voucher program, the Public Housing program, Project-based Rental Assistance, and other similar federal rental assistance programs must be excluded from the temporary pause of Federal financial assistance;
- The Department must clearly provide information to its housing partners, including public housing agencies, that clarifies that these programs are excluded;
- The Department must ensure that all systems related to drawing down funds for federal rental assistance are operational, including eLOCCS; and
- All funding appropriated by Congress, including community development grants and other funding necessary to modernize and improve affordable units, should be obligated.
The full letter from NAHRO to HUD can be found here.
[Edit on 1/28/2025 at 1:25 pm ET]
One of NAHRO’s members received an OMB frequently asked questions (FAQ) document from her Senator, which she shared with NAHRO. The document seems to indicate that the temporary pause of federal financial assistance may not apply to federal rental assistance programs. The document states the following:
Q: Is this a freeze on benefits to Americans like SNAP or student loans?
A: No, any program that provides direct benefits to Americans is explicitly excluded from the pause and exempted from this review process. In addition to Social Security and Medicare, already explicitly excluded in the guidance, mandatory programs like Medicaid and SNAP will continue without pause.
Funds for small businesses, farmers, Pell grants, Head Start, rental assistance, and other similar programs will not be paused. If agencies are concerned that these programs may implicate the President’s Executive Orders, they should consult OMB to begin to unwind these objectionable policies without a pause in the payments. [Emphasis added by NAHRO.]
NAHRO will continue to engage with HUD to request clarification specifically for the Public Housing program, the Housing Choice Voucher program, and other programs used by NAHRO members.
The full FAQ can be found here.
[Original post]
On January 27, the Office of Management and Budget (OMB) published a memorandum titled “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs.” The memorandum requires that all Federal agencies review all Federal financial assistance, excluding assistance provided directly to individuals to make sure that the supporting activities are consistent with the Administration’s policies and requirements. While doing this analysis, all Federal agencies are instructed to “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 [administration’s] executive orders . . . .” The temporary pause in funding will become effective on January 28, 2025 at 5:00 PM.
The memorandum states that by February 10, 2025, Federal agencies should submit detailed information on programs, projects or activities subject to the pause. The Office of Management and Budget may grant exceptions to Federal agencies “to issue new awards or take other actions on a case-by-case basis.” Additionally, Federal agencies must assign responsibility and oversight of Federal financial assistant to a senior political appointee; must review pending Federal financial assistance to conform to Administration priorities; and must “initiate investigations when warranted to identify underperforming recipients, and address identified issues up to and including cancellation of awards.”
At this time, NAHRO is investigating how this will impact HUD and whether this pause will apply to Public Housing, Housing Choice Vouchers, and other programs that may be used by our members. As we become aware of additional information, we will share it with the membership. We recommend that housing agencies try to draw down their funds before 5:00 PM Eastern time on January 28.
The full OMB memorandum can be found here.
NAHRO will update this article as we learn more.