Additional Message on Temporary Pause to Federal Programs
Updated at 4:32 p.m. January 29, 2025
Today, the U.S. Office of Management and Budget (OMB) rescinded Memorandum M-25-14, which temporarily paused federal programs. KHC is hopeful this means our federal programs will return to normal operations.
However, later this afternoon, the White House Press Secretary issued a social media statement saying, “This is NOT a recission of the federal funding freeze. It is simply a recission of the OMB memo…The President's EO's on federal funding remain in full force and effect, and will be rigorously implemented." KHC continues to seek clarity on this.
Updated Message on Temporary Pause to Federal Programs
About the Pause: A January 27, 2025, memorandum and accompanying Q&A document from the U.S. Office of Management and Budget (OMB) directed the heads of U.S. Executive Departments and Agencies to evaluate all federal financial assistance programs for consistency with presidential executive orders and to institute a temporary pause as of January 28, 2025 of agency grant, loan, and other financial assistance programs.
Programs Exempted from the Pause: KHC received communications yesterday from the U.S. Department of Housing and Urban Development (HUD) regarding certain programs that are not subject to the pause. Those exempt programs include:
- Federal Housing Administration (FHA) Single Family Title I and Title II mortgage insurance programs
- Section 8 Project Based Rental Assistance (PBRA)
- Section 8 Tenant Based Rental Assistance (Voucher Programs)
Legal Action Against the Pause: A lawsuit was filed yesterday in Washington, D.C. seeking to set aside the temporary pause. Yesterday, the U.S. District Court for the District of Columbia ordered an administrative stay directing OMB to refrain from implementing the pause until Monday, February 3, 2025. At this time, KHC has not received any information from HUD or other federal agencies related to this court order and its effect on the pause.
Continued Lack of Clarity: We know the federal housing programs KHC administers are essential to the Commonwealth of Kentucky. However, KHC has no clarity on its ability to reimburse costs incurred under federal financial assistance programs that are not listed above as exempt. We will continue to pursue guidance from federal agencies and share what we learn as information becomes available.