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Federal Financial Assistance Pause: What OMB Memo M-25-13 Said—and Why It Was Rescinded

OMB’s M-25-13 federal assistance pause was issued January 27, 2025, and rescinded two days later. Here is what the memo covered and what its rescission means.
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OMB’s federal financial assistance pause was a short-lived directive, not current OMB policy. Memorandum M-25-13, issued January 27, 2025, told agencies to review covered assistance programs and supporting activities and temporarily pause specified obligations and disbursements during that review. OMB rescinded it two days later, on January 29, through Memorandum M-25-14.

What was the federal financial assistance pause?

The Office of Management and Budget (OMB) titled its January 27, 2025 memorandum Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs. It directed agencies to identify and review federal financial assistance programs and supporting activities for consistency with presidential policies and requirements. The directive also called for a pause on specified obligations and disbursements while agencies conducted that review.

The memo defines federal financial assistance by reference to 2 CFR 200.1 and sets out scope provisions, exclusions, and agency review procedures. It should not be read as an unqualified freeze on every federal payment. The original text is available in OMB Memorandum M-25-13.

When was the memo issued and rescinded?

Date What happened
January 27, 2025 OMB issued M-25-13, directing agency reviews and a temporary pause for specified obligations and disbursements. Source: M-25-13.
January 29, 2025 OMB issued M-25-14, which states: “OMB Memorandum M-25-13 is rescinded.” Source: M-25-14.

The OMB memoranda index lists both memoranda and their dates. The Department of Education’s updated guidance, issued January 30, 2025, also reported that OMB had rescinded M-25-13 the previous day.

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What did the memo say about its scope?

M-25-13 concerned federal financial assistance programs and supporting activities, subject to its own scope language, exclusions, and procedures. The precise question of whether a particular grant, loan, payment, or agency activity fell within the directive depends on those provisions and how the responsible agency applied them. A broad shorthand such as “all federal funding was frozen” goes beyond what the memo’s text establishes.

At a January 29, 2025 White House briefing, Press Secretary Karoline Leavitt said direct individual assistance would not be affected. That was the administration’s public explanation at the briefing, not a replacement for the written scope and exclusions in M-25-13. See the January 29 White House briefing transcript.

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What does the rescission mean now?

M-25-13 is a historical directive that OMB rescinded on January 29, 2025; it is not current OMB policy. The rescission ended that memorandum as the basis for the pause it directed. It does not, by itself, resolve the status of every later federal assistance policy or agency-specific funding action. For a current funding question, identify the program, the administering agency, and the date, then consult that agency’s applicable guidance.

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