Latest Updates

(HSS) Administration for Community Living: Notice of Court Order

FEBRUARY 3, 2025—You are hereby advised that a temporary restraining order has been entered in the case of New York et al. v. Trump, No. 25-cv-39-JJM-PAS (D.R.I.), ECF No. 50 (Jan. 31, 2025). You are receiving this Notice pursuant to the Court’s directive that notice of the order be provided “to all Defendants and agencies and their employees, contractors, and grantees by Monday, February 3, 2025, at 9 a.m.” 

This case challenges an alleged “pause” of certain Federal financial assistance, related to OMB Memorandum M-25-13, Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs (Jan. 27, 2025) (“OMB Memo”). Although that OMB Memo was rescinded on January 29, 2025, the plaintiffs in the above-referenced case allege that the funding pause directed by the OMB Memo is still in effect, including because of recently issued Executive Orders by the President. 

In response, the Court has entered a temporary restraining order prohibiting certain actions by the Defendants in the case, which is effective immediately. All Defendants—including their employees, contractors, and grantees—must immediately comply with the Court’s Order. For complete details and terms of the Court’s Order, please refer to pages 11 and 12 of the Order. 

To assist in your compliance, here is a summary of the key terms: 

1. Federal agencies cannot pause, freeze, impede, block, cancel, or terminate any awards or obligations on the basis of the OMB Memo, or on the basis of the President’s recently issued Executive Orders. 
2. This prohibition applies to all awards or obligations—not just those involving the Plaintiff States in the above-referenced case—and also applies to future assistance (not just current or existing awards or obligations). 
3. Agencies may exercise their own authority to pause awards or obligations, provided agencies do so purely based on their own discretion—not as a result of the OMB Memo or the President’s Executive Orders—and provided the pause complies with all notice and procedural requirements in the award, agreement, or other instrument relating to such a pause.          
   1. On pages 11 and 12 of the Order, the Court prohibits agencies from pausing funding “except on the basis of the applicable authorizing statutes, regulations, and terms.” Thus, agencies remain free to exercise their own discretion under their “authorizing statutes, regulations, and terms,” including any exercise of discretion to pause certain funding. Additionally, agencies remain free to take action pursuant to the terms of the relevant award or obligation, such as in cases of grantee noncompliance. 
   2. Any exercise of agency discretion, however, cannot be based on the OMB Memo or the President’s Executive Orders, given that the Court has prohibited agencies from “implementing or giving effect to the OMB [Memo] under any other name or title[.]” (Order, pg.12). Additionally, any decision to pause, stop, delay, or otherwise withhold federal financial assistance programs must comply with all notice and procedural requirements in the award, agreement, or other instrument setting forth the terms of the award or obligation. 
4. Out of an abundance of caution, all federal agencies (even those not named as defendants in the case) should comply with the above-referenced

As the Court’s Order reflects, the above terms are temporary as litigation in the case is ongoing. At present, however, the Court’s Order is in effect and must be complied with.

If you have any questions about the scope or effect of the Court’s Order, please contact your agency’s Office of General Counsel or your grant officer, as appropriate. Thank you for your attention to this matter. 

Judge Temporarily Blocks Trump’s Freeze of Federal Funding

JANUARY 28, 2025—A federal judge temporarily blocked the Trump administration’s freeze on federal grants and loans. The administrative stay lasts until Monday afternoon following another court hearing scheduled for Monday morning to consider the issue.

Following is an excerpt of the Court’s order:

Accordingly, to maintain the status quo until the court may rule on Plaintiffs’ motion, it is hereby ORDERED that an ADMINISTRATIVE STAY is entered in this case until 5:00 pm at February 3, 2025. During the pendency of the stay, Defendants shall refrain from implementing OMB Memorandum M-25-13 with respect to the disbursement of Federal funds under all open awards.

It is further ORDERED that Defendants shall respond to Plaintiffs’ request for a temporary restraining order by 5:00 pm on January 30, 2025, and Plaintiffs shall file a reply, if any, by 5:00 pm on January 31, 2025.

Read the complete court order.

PHADA Writes to HUD Acting Secretary Ammon

On September 28, PHADA sent a letter to HUD’s Acting Secretary Matthew E. Ammon on behalf of its members expressing deep concern that any pause in assistance will endanger the housing stability of millions of vulnerable, low-income families.

Read PHADA’s letter.

OMB Pause in Federal Grants, Loans & Financial Assistance

JANUARY 27, 2025—The White House Office of Management and Budget (OMB) issued a memo last night that would temporarily pause billions of dollars in federal assistance. At this stage, it is unclear whether any public housing, Section 8, or other federal housing assistance is affected under the memo. PHADA has contacted HUD staff to inquire about the Executive Order’s impact, while also raising its serious concerns. In addition, key lawmakers have raised questions about the legality of the freeze given that it involves funds that Congress has already appropriated under law.

Read more.