Update 1/29/2025: The White House has rescinded the Office of Management and Budget (OMB) memorandum (M-25-13). In a statement, White House Press Secretary Karoline Leavitt said the administration was still pursuing a freeze.
"This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo," she said. "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."
Reports indicate that Leavitt is referring to the executive orders signed last week, which direct government agencies to review and cut funding for programs that do not align with the administration’s priorities. The now-rescinded OMB memo was initially issued to implement these orders by pausing all spending while agencies determined which programs to defund. While that specific memo is no longer in effect, the broader executive orders remain active.
Additional guidance from OMB and federal agencies is expected as the administration refines its approach. Fluxx will continue to monitor these developments and provide updates as more information becomes available..
Fluxx will continue to monitor these developments and update.
------------------------------------------------------------------------------
The social sector has always been a vital safety net for communities, but recent developments require nonprofits and agencies to recalibrate their strategies and prepare for the short- and long-term future. A new executive order, coupled with an Office of Management and Budget (OMB) memorandum, directed a temporary pause on federal funding obligations and disbursements. This directive is subject to ongoing legal challenges including a federal court ruling which continue to evolve the circumstances for its implementation.
