On Monday evening, OMB sent a shockwave across the federal government, issuing a two-page Memorandum to federal agencies to put a temporary pause on obligating or disbursing funds for agency grants, loans, other financial assistance programs, and open notices of funding opportunities. Social Security, Medicare, and other programs aiding directly to individuals were not included in this OMB directive. The OMB memo stated that the temporary pause “will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities”.

Just before its effective date on Tuesday afternoon, a judge issued a brief administrative stay which blocked implementation of the memo. Then on Wednesday, OMB issued a new memo rescinding the funding pause. White House Press Secretary Karoline Leavitt said that while the memo was rescinded, “the Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments.” In a separate lawsuit, another federal judge said during a Wednesday hearing that he was inclined to halt the administration from pausing funding.