Trump Administration Rescinds “Funding Freeze” Memo

What happened: The U.S. Office of Management and Budget (OMB) Jan. 29 pulled back its controversial Jan. 27 memorandum that would have paused grant disbursements and outlays of other major financial assistance. There has been widespread confusion in Washington, D.C. and across the country about which agencies would be affected, including the U.S. Department of Transportation (DOT).

Why it matters: With the rescission, uncertainty over federal reimbursements for completed infrastructure work should subside for now. The vast majority of highway and transit programs will continue normal operations. However, the Jan. 20 Executive Order (EO) pausing spending on some electric vehicle charging station programs and previously announced discretionary grants without a signed grant agreement remains intact.

What’s next: With newly confirmed U.S. DOT Secretary Sean Duffy in place and bringing on his senior staff, expect additional clarification on how the original Jan. 20 EO will be implemented. White House officials are also signaling there may be more EOs and OMB memos related to federal spending.