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Funding Freeze Withdrawn After White House Rescinds Memo

January 29, 2025

In late January, the Office of Management and Budget (OMB) sent a memo to all executive departments and agencies ordering them to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.” The pause was intended to allow agencies time to review federal programs to ensure alignment with “the President’s policies and requirements.” 

On January 29, the White House withdrew the original OMB memo. At this time, no funding freeze will occur and COSCDA members should be able to access HUD grant management systems and funding. The memo also faced several legal challenges, including being temporarily blocked by a federal judge before the funding freeze officially went into effect. 

COSCDA is concerned about the potential for future funding freeze orders and other threats to community development, housing, homelessness, and disaster recovery funding. To prepare for these threats, it would be helpful for COSCDA members to contact us about the following:

  1. Let us know if at any point your agency is locked out of IDIS, DRGR, eLOCCS or any other Federal grant management system. 
  2. Let us know what a funding pause would mean for your programs – would projects be delayed? Would crucial payments be impacted? 

Feel free to also contact COSCDA with any questions you have.