NEA Emergency meeting on Federal Funding

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https://us02web.zoom.us/j/87568084954?pwd=Z4UMYpAPRtNng4m7I37Y7QaFit5HJ0.1

Meeting ID: 875 6808 4954. Passcode: 356368

Yesterday, the Federal Office of Management and Budget issued a memo directing federal agencies to temporarily pause all activities related to the disbursement of federal financial assistance. The temporary pause applies to programs potentially affected by recent executive orders, including those related to diversity, equity, and inclusion (DEI), foreign aid, and environmental initiatives, among others. As you can imagine, the announcement caused some confusion this morning, so my team and I have been closely monitoring the situation in league with our federal lobbyists, NACo, and other large urban counties from across the US. 

The specifics of how this directive will be implemented have been released slowly over the course of today. As of now, Federal OMB has issued new guidance, including a new Q&A, that is attached to this email.

FAQs for OMB Memorandum

When does the pause go into effect? Today, January 28 at 5:00 p.m. ET.

When will the pause end? While we are still waiting on an exact date, federal agencies have been instructed to submit to OMB detailed information on programs, projects or activities subject to the pause by February 10, 2025.

What programs are impacted by the pause? The memo orders Federal agencies to temporarily pause all activities related to obligation or disbursement of all Federal financial assistance that may be implicated by the executive orders below:

• Protecting the American People Against Invasion
• Reevaluating and Realigning United States Foreign Aid
• Putting America First in International Environmental Agreements
• Unleashing American Energy Ending Radical and Wasteful Government DEI Programs and Preferencing
• Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government
• Enforcing the Hyde Amendment

What programs are NOT subject to the pause?

• Any program not implicated by the President’s Executive Orders is not subject to the pause – Programs that do not fall within the above EOs are not subject to the pause
• Programs that provide direct benefits to individuals are excluded from the pause and exempted from the review process. This includes:
• • Social Security
  • Medicare
  • Medicaid
  • Supplemental Nutrition Assistance Program (SNAP)
  • Head Start
  • Rental assistance
  • Pell grants
  • Funds for small businesses
  • Funds for farmers

How is federal assistance defined in the memorandum?

• Per the memo, Federal financial assistance means:
• • (1) Assistance that recipients or subrecipients receive or administer in the form of:
  • • (i) Grants;
    • (ii) Cooperative agreements;
    • (iii) Non-cash contributions or donations of property (including donated surplus property);
    • (iv) Direct appropriations;
    • (v) Food commodities; and
    • (vi) Other financial assistance (except assistance listed in paragraph (2) of this definition).
  • (2) For § 200.203 and subpart F of this part, Federal financial assistance also includes assistance that recipients or subrecipients receive or administer in the form of:
  • • (i) Loans;
    • (ii) Loan Guarantees;
    • (iii) Interest subsidies; and
    • (iv) Insurance.

We will continue to monitor. Please see this resource for additional information/