Important Update to Temporary Pause Memo - "federal financial aid to students will not be affected"
January 28, 2025
CEO Colleagues:
Woke up this morning to questions regarding a January 28th memo (M-25-13) from Matthew J. Vaeth, Acting Director, Office of Management and Budget, about Temporary Pause of Agency Grant, Loan, and Other Financial Assistance.
I wanted to get on your radar right away significant updates to interpreting this memo. Attached, please find important clarification that was sent by the Office of Management and Budget within the last hour, documenting that federal financial aid to students will not be affected by this memo or the executive orders that were the reason for the memo – please see attached.
The key information for our system is contained in these two questions in the Q & A
Q: Is this a freeze on all Federal financial assistance?
A: No, the pause does not apply across-the-board. It is expressly limited to programs, projects, and activities implicated by the President’s Executive Orders, such as ending DEI, the green new deal, and funding nongovernmental organizations that undermine the national interest.
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.
thnx
sonya
