UPDATE #2 1/29: The Trump Administration has rescinded the original order for the funding freeze.

UPDATE #1 1/29: Yesterday afternoon, the Trump Administration released a new memo to clarify the earlier one on pausing federal grant and other financial assistance programs. Punch Bowl has the memo itself and several other news outlets are summarizing its contents and directions from the White House. It says that, “any program not implicated by the President’s Executive Orders is not subject to the pause,” and then specifically lists the executive orders listed in the original memo that apply. It continues by saying, “any program that provides direct benefits to individuals is not subject to the pause,” and that the, “guidance establishes a process for agencies to work with OMB to determine quickly whether any program is inconsistent,” with the listed Executive Orders. The memo also makes the argument that this is not a freeze on all Federal financial assistance programs and that it is not impoundment. While this clarification is helpful, it does not clear up all the confusion from the original order and what specific programs are impacted and for how long.

As well, just before the 5pm Tuesday deadline for the original memo to take effect, a federal judge in Washington DC temporarily blocked the Trump administration from enforcing this directive. This halts the freeze on funding until Monday February 3rd. Additionally, a coalition of 21 state attorney generals announced legal action against the White House budget office over this matter.

In related news, NSF has created an Executive Order Implementation webpage to ensure the widest dissemination of information and updates on the subject. The other research agencies are likely to set up similar pages soon.

CRA is continuing to actively monitor the situation and we are engaging with our stakeholders to stay informed. We will continue to provide updates as the situation changes.

Original post: Last night, the Trump Administration issued a memo to “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs.” The order from the Office of Management and Budget (OMB) requires all federal agencies to, “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.” The stated purpose is, “to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities.” The pause is ordered to take effective today, January 28th, at 5pm and is to remain in effect until February 10th, though it could be extended.

The OMB memo requires every federal agency to pause:

(i) issuance of new awards;
(ii) disbursement of Federal funds under all open awards; and
(iii) other relevant agency actions that may be implicated by the executive orders, to the extent permissible by law.

OMB also requires all, “Federal agencies to pause all activities associated with open NOFOs (Notice of Funding Opportunity), such as conducting merit review panels.” The order explicitly exempts mandatory spending like Social Security and Medicare, as well as, “assistance provided directly to individuals.” This order will likely impact much, if not all, discretionary funding that the Federal Government spends, including research funding. However, there is significant confusion about how the memo will be implemented and whether it is legal.

This is likely the first move in the expected impoundment actions that the Trump Administration has been telegraphing. Impoundment is when the President does not spend federal dollars that have been legally appropriated by Congress. With a few execeptions, the Executive Branch is required by the Constitution to spend funds as the Legislative Branch directs (this is where the term “power of the purse” comes from). Legally this situation will turn on whether this is a temporary pause to perform a review or not. Already key members of Congress have called on the Administration to stop this action and, “ensure all federal resources are delivered in accordance with the law.”

CRA is monitoring the situation closely and will report out any developments. In our conversations with policymakers, we will explain the damaging impacts this order will have on the nation’s computing research community. As well, we strongly encourage all members of our community to contact their Senators and Representatives in Congress and tell them how this action will impact their constituents and districts.