Notice Regarding Funding Pause - Temporary Restraining Order
ID: 001-25Type: Special Notice
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DEPARTMENT OF HOMELAND SECURITYUS
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    The Department of Homeland Security has issued a special notice regarding a temporary restraining order (TRO) that affects certain federal financial assistance programs, including grants. This TRO, stemming from a U.S. District Court ruling in the case of New York et al. v. Trump, prohibits federal agencies from pausing, freezing, or terminating federal awards based on the Office of Management and Budget (OMB) Memorandum M-25-13 or related executive orders. The order underscores the potential irreparable harm to states dependent on federal funding for essential services and emphasizes the need to maintain the separation of powers. Further guidance from DHS is anticipated, and interested parties should refer to the attached court order for detailed information.

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    The document outlines a temporary restraining order (TRO) from the U.S. District Court for the District of Rhode Island regarding the case of New York et al. v. Trump, involving allegations against the Executive's pause of federal financial assistance as per OMB Memorandum M-25-13. The Court prohibits federal agencies from pausing, freezing, or terminating federal awards based on this memorandum or related Executive Orders. Key points include that the pause applies universally across all financial assistance programs and that agencies retain discretion to act according to relevant laws, not the OMB memo. The Court emphasizes potential irreparable harm to states relying on federal funding for essential services and highlights the importance of preserving the separation of powers. As the litigation progresses, the TRO will remain in effect until further court orders are issued. This case has implications for federal grants and funding processes, showcasing the tensions between executive authority and legislative intent within the framework of federal financial assistance.
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