We are in unprecedented times across the board. My heart goes out to all affected by all these changes and confusion! A federal judge ordered a temporary administrative stay on the current administration's proposed freeze on hundreds of billions of dollars in federal grants, cooperative agreements, loans, and other federal financial assistance.
The stay was prompted by a lawsuit brought by several nonprofit groups. The stay lasts until Monday afternoon (February 3, 2025) and applies only to existing programs.
The National Council of Nonprofits and other organizations sued the Office of Management and Budget and its Acting Director Matthew Vaeth Tuesday in federal court and the stay became effective just minutes before the pause was to take effect at 5:00pm today.
The plaintiffs argued the guidance will have a “devastating impact” on nonprofits that receive government grants, which depend on the federal funds to:
fulfill their missions
pay their employees
pay their rent—and,
improve the day-to-day lives of the many people they work so hard to serve.
In addition, multiple attorneys general announced they will also file a lawsuit later today.
All federal workers offered a buyout
In other news, the administration announced that it offered "all federal workers a buyout with seven months' pay in an effort to shrink the size of the government."
NOTE: If the federal workforce shrinks, this can impact the federal awarding agencies' ability to administer existing grants and other federal financial assistance.
Federal agencies have in-house grant management officers and grant management specialists who provide federal regulatory guidance to in-house programmatic subject matter experts (project or program officers) and to the agency's grantees.
Please reach out if you need support or have additional information. We are here to help one another!
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