Raises Questions and Alarm—PHADA Working to Obtain Answers
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.
Federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” White House Office of Management and Budget acting director Matthew Vaeth wrote in the memorandum. The memo further states that departments and agencies must perform “a comprehensive analysis” to ensure their grant and loan programs are consistent with President Trump’s new executive orders. Agencies are required to submit detailed lists of projects suspended under the new order by February 10. The memo specifies that the pause will not affect Social Security or Medicare benefits, nor does it include “assistance provided directly to individuals.”
Some key leaders of Congress including Senate Minority leader Charles Schumer (D-NY) and Senator Patty Murray (D-WA, the ranking member on the Senate Appropriations Committee) immediately objected to the move. Murray and her counterpart on the House Appropriations Committee, Rep. Rosa DeLauro (D-CT), wrote a letter to the White House on Monday night outlining their “extreme alarm” with the move. “The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country,” the lawmakers wrote. “We write today to urge you in the strongest possible terms to uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law.”
As noted above, PHADA is attempting to get more information about the scope of the memo, which is causing considerable confusion throughout the government, amongst grantees, and on Capitol Hill. The Association’s staff will report further details as soon as possible.