Federal Government Pause on Grants: Implications and Recommendations
- January 28, 2025
- Resources
On January 28, 2025, the federal government announced a temporary suspension of all federal grants and loans. This decision is part of an administrative review to ensure alignment with the President’s priorities. The suspension applies to grants that have been awarded but not yet disbursed, as well as new awards. While there is no official end date for the pause, agencies are required to submit program reviews by February 10, 2025.
What We Know So Far
Scope: The pause affects all federal financial assistance programs, except for direct individual assistance programs like Social Security and Medicare.
Exceptions: Some agencies may receive case-by-case approval to issue grants during this period.
Uncertainty: Specific details about which programs are affected—including those like the Department of Transportation’s RAISE grant—remain unclear.
Recommended Actions
While this situation unfolds, here are some proactive steps you can take:
Stay Informed: Monitor official communications from relevant federal agencies, including the Office of Management and Budget (OMB) and the agencies administering your grant programs. Updates will provide clarity on how this pause may impact specific grants.
Evaluate Current Projects: If you have received grant funding that has not yet been disbursed, contact the funding agency to inquire about the status of your award. Be prepared to provide documentation demonstrating the importance and readiness of your project.
Plan for Delays: Anticipate potential delays in grant disbursements and funding decisions. Adjust project timelines and budgets accordingly to account for any disruptions.
Engage Stakeholders: Keep key stakeholders—such as project partners, community leaders, and contractors—informed about potential impacts to ensure transparency and maintain support.
Leverage Other Funding Sources: If feasible, explore alternative funding options, including state and local grants, private foundations, or other non-federal funding opportunities to bridge potential gaps.
Prepare Advocacy Materials: Should the opportunity arise to advocate for your project, prepare materials that highlight its alignment with federal priorities and its local or regional significance.
How We Can Help
As your grant writing and management partner, we are closely monitoring this situation and its implications. Our team is here to assist you by:
Providing updates on developments related to the pause.
Reviewing and revising grant applications to ensure they align with federal priorities.
Helping you identify alternative funding sources.
Advising on communication strategies with funding agencies and stakeholders.
We understand the uncertainty this situation may bring, and we are committed to supporting you through this period. If you have specific concerns or require assistance, please do not hesitate to reach out.