White House Withdraws Federal Funding Freeze

White House Withdraws Federal Funding Freeze

As a follow-up to our January 28 e-Lert regarding the Office of Management and Budget’s (OMB) review of federal financial assistance programs under Presidential Memorandum M-25-13, we want to provide you with important updates on recent developments.

On January 29, 2025, the White House withdrew its proposed spending freeze that would have affected numerous federal funding programs. This decision came after a federal judge in Washington temporarily blocked implementation of the freeze and before another scheduled hearing on separate legal challenges from state attorneys general.

The withdrawal eliminates immediate concerns about disruptions to federal program funding. Federal agencies are expected to resume their normal operations and funding processes, including those related to broadband and telecommunications programs.

While this withdrawal provides immediate relief, we anticipate the Administration may reinstate this order once it has had an opportunity to reconsider the scope and implementation of the original directive or take some related action.

JSI recommends that clients continue their standard procedures regarding federal and state funding applications and programs. This approach helps ensure continuity in operations, compliance, and funding opportunities.

We continue to closely monitor developments that may affect communications providers and remain committed to providing timely updates as the situation evolves. For questions about specific programs, Presidential Orders, legislation, or funding applications, please contact Jenn Holtz, Douglas Meredith, or Brett Hallagan.