Acting OMB Director Vaeth issued Memo M-25-13, ordering immediate freeze of all federal grants and loans pending executive-order compliance review
On January 27, 2025, acting OMB Director Matthew Vaeth issued Memorandum M-25-13, directing all federal executive branch agencies to immediately pause all activities related to obligation or disbursement of federal financial assistance, effective 5:00 p.m. EST the following day. The directive nominally covered an estimated $3 trillion in annually appropriated federal funds, including grants, loans, foreign aid, DEI programs, and climate initiatives. A district court issued an administrative stay on January 28; OMB rescinded the memo on January 29, though the White House declared the underlying freeze authority remained in force.