WASHINGTON D.C. – On Monday, Jan. 27 the Federal Office of Management and Budget (OMB) released Memorandum M-25-13, the Temporary Pause of Agency Grant, Loan and Other Financial Assistance Programs. The memo went into effect the following day on Tuesday, Jan. 28 at 5 p.m. EST.
The memo initially stated that the pause was necessary to review the $3 trillion used for funding assistance and insure that it was being put to best use. An excerpt from the memo reads,
“To implement these orders, each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders. In the interim, to the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
In response, a complaint was filed in federal court against OMB, which sought an injunction from implementing the memo. Federal District Judge Loren AliKhan granted a temporary administrative stay on the freezes, which paused the disbursement in open grants.
Among those receiving federal financial assistance were the sovereign tribal nations, including the Muscogee (Creek) Nation. In response to the OMB’s order, MCN Principal Chief released Executive Order No. 25-01, An Immediate Spending and Hiring Freeze for all Executive Branch – Tribally and Federally Funded Employees.
The EO’s language encompasses all matters within each tribal government department related to hiring and purchases up to a certain amount. According to the EO,
“Effective immediately, there shall be a hiring freeze for all tribally and federally funded programs. Tribally and federally funded programs shall not enter into any new contracts, agreements or purchase orders for the acquisition of any items or equipment which exceeds one thousand dollars. Exceptions to this section may be granted by the Principal Chief or Controller for critically necessary work of a department or an event that requires government action to protect life or public safety.
All travel for tribally and federally funded programs shall be suspended effective immediately. Exceptions may be granted by the Principal Chief or Controller for travel of an employee that is required for the performance of their job or is a requirement for government action to protect life or public safety.”
The EO explicitly states the freeze will not effect the MCN Health Department. Clarification from MCN Press Secretary Jason Salsman reiterated that the EO is a precautionary measure to limit non-essential purchases. MCN Health Director of Development and Outreach Heather Griffin asserted that there will be no disruption of services for patients.
The EO went into effect Wednesday, Jan. 29. Shortly after, OMB rescinded the initial Memorandum M-25-13. The short-lived financial assistance freeze put other widely-used federal programs into question like Medicare, Social Security and Medicaid. In an effort to clarify language in the original memo, OMB released a clarification that the freeze did not affect all financial assistance, and that it was specifically targeting Diversity, Equity and Inclusion (DEI) programs, The Green New Deal and “nongovernmental organizations that undermine the national interest”.
Although the OMB’s memo was rescinded, as of January 31 Chief Hill’s EO on spending and hiring expenditures is still in effect.