What’s Up in Washington – February 4, 2025 02/04/2025
Recent executive actions, recently rescinded OMB memorandum M-25-13, and federal court decisions on lawsuits filed against subject memorandum have created uncertainty and confusion related to the administration of conservation grants and programs. Last week, NACD issued a memo based on our best understanding and interpretation of relevant orders, communications, and actions. However, the situation is changing daily and the impacts are still unclear. Federal agencies are working to interpret and implement these orders and will share guidance as soon as possible. Please continue to reach out to NACD staff with questions, concerns, and to share information.
Below is a short summary of the status of the OMB directive originally issued last week to temporarily pause the obligation or disbursement of all federal financial assistance:
On the evening of January 27, 2025, the Office of Management and Budget (OMB) issued memorandum M-25-13, which temporarily paused the obligation or disbursement of all federal financial assistance (e.g., via grants or cooperative agreements; not financial assistance to individuals) and initiated a review all federal financial assistance vehicles. The temporary pause was set to become effective on January 28 at 5:00 p.m. ET.
On the evening of January 28, a federal judge issued a temporary restraining order (TRO) prohibiting President Trump, OMB, and eleven federal agencies from pausing, freezing, impeding, blocking, cancelling, or terminating the Government’s compliance federal financial assistance obligations (e.g., through grants or agreements). It also blocked the Defendants from reissuing, adopting, implementing, or otherwise giving effect to the OMB memo under any other name or title. Although USDA was not explicitly listed as a defendant, the OMB memo applied government-wide.
On January 29, NACD sent a letter to USDA requesting an exemption to the pause on IRA financial assistance funds for conservation districts and their associations.
On January 29, OMB rescinded the memorandum to end any confusion created by the January 28 court order. However, the White House Press Secretary stated that recission of the memorandum was not a recission of the federal funding freeze.
On February 3, a federal judge issued a second TRO. The court rejected OMB’s claim that the recission of the memorandum rendered the case moot, as the White House Press Secretary made it clear that the pause on funding and disbursements remained in full force and effect. The court also rejected OMB’s argument that any persisting funding freezes were due to independent agency discretion or the President’s Executive Orders. In summary, this TRO:
- The TRO applies to the pause on disbursement of federal funds under open awards.
- Requires agencies to release any disbursements on open awards that were paused.
- Does not prohibit federal agencies from conducting a review of all federal financial assistance vehicles.
- Confirms that OMB and other federal agencies cannot implement, enforce, or reinstate the directives of OMB Memorandum M-25-13 under any name.
- The court’s example of “reinstating directives under a different name” is the White House Press Secretary’s comment that the freeze would continue even with the rescission of the OMB memo.
It is NACD’s understanding that agencies will resume disbursements and have seen evidence of this activity. We understand that USDA will require grantees to certify that activities performed under the grant or agreement comply with Executive Orders as a condition of payment. This language has not been released as of today.
NACD is working closely with our federal agency partners to track these developments and understand their impact on the important work conservation districts are fulfilling across the country. NACD will provide updates as we learn more.
Congressional Updates:
On Wednesday, December 5 at 10:30 a.m. ET the Senate Committee on Agriculture is holding a hearing titled: “Perspectives from the Field: Farmer and Rancher Views on the Agricultural Economy, Part. 1.” Panelists include the American Farm Bureau Federation, National Farmers Union, and National Corn Growers Association.
Brooke Rollins’ nomination to serve as USDA Secretary will be considered by the full Senate after the Senate Committee on Agriculture voted unanimously to advance her nomination. Her Senate confirmation vote could be scheduled as early as next week. Senate Finance Committee advanced Robert F. Kennedy Jr.’s nomination to lead the Department of Health and Human Services by a vote of 14-13. The full Senate will now consider his nomination.
Yesterday, President Trump announced a 30-day postponement of scheduled tariffs on some Mexican and Canadian imports following negotiations with the countries’ leaders. A 10% tariff on some Chinese imports is set to begin today. Republican lawmakers and committee leaders are working to reach an agreement on a budget resolution and subsequent reconciliation legislation.