This post first appeared on Government Executive. Read the original article.
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A large portion of the federal workforce received a notice on Monday that President Trump’s freeze on significant segments of federal funding is no longer operative and they can no longer take any action to pause or otherwise block the spending from going out.
The notice follows a federal judge in Rhode Island issuing a temporary restraining order on a controversial Office of Management and Budget memorandum that appeared to freeze all federal grants, loans and non-individualized assistance programs. That order required notices to be sent to employees at all named defendants in the case—brought by 22 states and Washington, D.C.—which included the departments of Treasury, Defense, Education, Transportation, Labor, Energy, Homeland Security and Justice, as well as the Environmental Protection Agency and National Science Foundation.
The notice to employees, which was obtained by Government Executive, explained that agency personnel “cannot pause, freeze, impede, block, cancel, or terminate any awards or obligations” on the basis not just of OMB’s memo but neither due to Trump’s recently issued executive orders. The Trump administration already rescinded the memo last week, but the White House insisted the president’s orders more narrowly focused on freezing foreign aid, infrastructure and climate spending remain in effect.
“The president’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented,” White House Press Secretary Karoline Leavitt said last week.
In contrast, agencies on Monday notified employees the prohibition extended to all awards or obligations and Trump’s orders could not be cited for any pause. Agencies can still use their own discretion to block funding using applicable statute or regulation. The notice went on to say that all federal agencies, not just those named as defendants, should comply with the order “out of an abundance of caution.”
“As the court’s order reflects, the above terms are temporary as litigation in the case is ongoing,” the notices said. “At present, however, the court’s order is in effect and must be complied with.”
An email to National Science Foundation employees, who last week were instructed to freeze all grant funding in response to Trump’s order on diversity, equity and inclusion, said the agency has resumed payments to grant awardees in response to the court’s order.
“The Department of Justice has determined that it applies to all NSF award recipients,” Sethuraman Panchanathan, the agency’s director, said in the message to staff, which was obtained by Government Executive. He directed employees not to take any action “to delay or stop payment for active grants” due to Trump’s orders.
Panchanathan added NSF will continue to review its award portfolio to identify those out of alignment with Trump’s orders.
At the Environmental Protection Agency — where significant funding has been frozen due to Trump’s orders on spending related to the Inflation Reduction Act, Infrastructure Investment and Jobs Act and DEI and other issues — employees were told that specific guidance for the agency would be forthcoming. One EPA employee told Government Executive the implications of that order were not immediately clear.
“Not sure what is happening,” the employee said. “Panic all around.”
An email sent to Federal Emergency Management Agency staff also obtained by Government Executive said the restraining order “prohibits certain actions” and additional guidance would be forthcoming regarding DHS’ “separate authority.”
OMB did not respond to a request for comment.
The sweeping order to freeze all federal grants, loans and assistance not provided directly to individuals led to significant confusion inside agencies as employees faced uncertainty as to whether their programs and initiatives were affected. While the memo appeared to provide for few exceptions, administration officials said its impact would be more narrow in scope. Still, agency staff and federal grantees spent much of last week seeking clarification and bracing for federal funding spigots to be shut off.
The memo raised questions about the president’s authority to pause wide swaths of congressionally appropriated funding for policy reasons, which is generally prohibited by the 1974 Impoundment Control Act. Impacted groups and states quickly sued. Another federal judge in Washington is currently weighing whether to implement a restraining order of her own.
In issuing his order, Judge John McConnell of the U.S. District Court for Rhode Island said his temporary injunction was necessary as the states were likely to succeed in their case.
Pausing some funding is likely legal, McConnell said, but he was “equally sure that there are many instances in the executive orders’ wide-ranging, all-encompassing, and ambiguous ‘pause’ of critical funding that are not.”
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