2025 United States federal government grant pause

On January 27, 2025, the Office of Management and Budget (OMB), an office of the Executive Office of the President of the United States, ordered a pause to the disbursement of federal grants and loans, to take effect the following day. Acting director Matthew Vaeth characterized the order as necessary to prevent funding for diversity, equity, and inclusion (DEI) programs and woke ideals. Although the exact extent was initially unclear, the memo exempted federal assistance to individuals from the pause, including programs such as Social Security and Medicare. Despite this, reimbursements for programs such as Medicaid and Head Start were inaccessible to many on January 28. The OMB released a second memo clarifying the order, saying that it was necessary to implement President Donald Trump's recent executive orders.

The pause in funding for "open awards" was stayed on January 28 by district judge Loren AliKhan, minutes before the deadline for the pause. On January 29, the OMB retracted the initial memo, but White House press secretary Karoline Leavitt said that efforts to freeze federal funding would continue. On January 31, district judge John J. McConnell Jr. issued a temporary restraining order mandating that federal agencies cannot impede or cancel "any awards or obligations" on the basis of the OMB memo or Trump's recent executive orders. AliKhan and McConnell issued preliminary injunctions against the Trump administration in February 2025 and March 2025 respectively. Also in February 2025, McConnell cited evidence that the Trump administration "continued to improperly freeze federal funds and refused to resume disbursement of appropriated federal funds".