President Trump’s Immigration-Related Executive Orders: Potential Impact on Employers
Following his inauguration on Jan. 20, 2025, President Trump issued a number of immigration-related Executive Orders (EOs) sure to have impact on employers and their business operations. So far, the focus in the media has been on border security, asylum, refugees, removal of undocumented aliens (deportation) and birthright citizenship. However, there are other aspects covered by the EOs that will have far more impact on U.S. employers and could potentially impact business operations. While we anticipate court challenges to some or all of the EOs, we anticipate that many of the EOs will withstand litigation and will be implemented substantially. Below is a summary of the EOs:
Banning Birthright Citizenship
This EO directs federal agencies to refuse to recognize U.S. citizenship for children born in the U.S. to mothers in the country without authorization or who are present in the United States on nonimmigrant visas, if the father is not a U.S. citizen or green card holder. The order will deny U.S. citizenship, including passports, to children born in the United States 30 days from Jan. 20, 2025, if at least one parent is not an American citizen or green card holder. It is not clear what immigration status, if any, these children would hold at birth or if these children would be issued U.S. birth certificates.
Please note: Several lawsuits have been filed challenging this EO. Following a suit filed in U.S. District Court in Seattle by the attorneys general of Washington State, Oregon, Arizona and Illinois, Judge John Coughenour enjoined enforcement of this order, calling it “blatantly unconstitutional.”
Potential Impact on Employers if Upheld
Increased visa sponsorship costs if the employer covers dependent visa legal and filing fees;
Potential travel delays for visa employees traveling with family for holidays or vacations as U.S.-born children will require passports of the parents’ home country, dependent visas issued by U.S. consular posts abroad and outbound visas to visit and transit countries that do not typically require visas for U.S. citizens; and
These children will lose lawful immigration status at age 21, the age at which children are no longer deemed dependents for immigration purposes, potentially impacting long-term colleague retention. This could be a particular concern for visa employees from countries like India and China, where foreign-born children often age-out due to lengthy green card backlogs.
Enhanced Visa Vetting
President Trump has signed an order to enhance vetting and screening of undocumented aliens, suspend entry of migrants from countries of particular concern and re-establish a uniform baseline for visa screening and vetting standards and procedures consistent with the baseline that existed during the last Trump administration. During his first administration, President Trump banned travel from countries, including Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for 90 days with certain exceptions. The bans were challenged in court, but the Supreme Court ultimately upheld them.
Potential Impact on Employers
Lengthy visa processing delays related to background checks for traveling work visa employees;
Disrupted business travel for citizens of banned countries, preventing them from leaving the U.S. for fear of becoming stranded outside the country;
Difficulty filing extension of status and change of status petitions for citizens of these countries; and
Disrupted business travel for all visa employees with temporary work visas.
Recission of President Biden’s EO Designed to Limit Requests for Evidence and Denials
One of President Trump’s EOs revoked 78 Biden EOs, including President Biden’s EO Number 14012 (Restoring Faith in Our Legal Immigration Systems and Strengthening Integration and Inclusion Efforts for New Americans) which established USCIS deference to prior decisions in certain cases, for instance H-1B extensions; streamlined the naturalization process; and reduced the number of Requests for Evidence and denials received by employers and individuals applying for immigration benefits. The Trump EO will lead to reinstatement of USCIS adjudication practices in place during the first Trump administration.
Potential Impact on Employers
Increased scrutiny of employer visa petitions and denials, including the end of deference to prior adjudications/decisions;
Increased costs and processing times associated with non-immigrant and immigrant visa petitions;
Limited number and scope of individuals employers are able to sponsor for immigrant and nonimmigrant visas;
Disrupted HR and other internal operations;
Increased Requests for Evidence, Notices of Intent to Revoke or Deny. Denials can create uncertainty about visa employees’ ability to remain with the business and, in some cases, impact an individual’s work authorization;
Anticipated changes to the H-1B program such as re-defining “specialty occupation,” increasing wage requirements, and prioritizing H-1B cap registrations based on compensation levels could further limit employers’ ability to sponsor foreign nationals for H-1B visas; and
Anticipated restrictions on F-1 Optional Practical Training (OPT), termination of certain work authorization programs, such as H-4 EADs might force employers to reevaluate their talent acquisition pools and strategies.
Potential Recission of Humanitarian Parole and Temporary Protected Status
President Trump signed an EO on enforcement of U.S. immigration laws which, among other focus areas, aims to limit Humanitarian Parole to individuals who demonstrate “urgent humanitarian reasons for a significant public benefit derived from their … continued presence in the United States.” The EO also seeks to ensure “that designations of Temporary Protected Status are consistent with the provisions of section 244 of the INA (8 U.S.C. 1254a), and that such designations are appropriately limited in scope and made for only so long as may be necessary to fulfill the textual requirements of that statute.” Furthermore, the EO seeks to ensure “that employment authorization is provided in a manner consistent with section 274A of the INA (8 U.S.C. 1324a), and that employment authorization is not provided to any unauthorized alien in the United States.”
During President Trump’s initial term, he attempted to terminate TPS designations for Sudan, Nicaragua, Haiti, El Salvador, Nepal and Honduras. These terminations faced court challenges that resulted in injunctions against the termination of TPS designations.
If President Trump attempts to terminate TPS designations for any of the currently designated countries, similar legal challenges and injunctions are anticipated.
Individuals granted Humanitarian Parole and TPS are permitted to live and work in the U.S. in usually granted one-year increments.
Potential Impact on Employers
Employees authorized to work pursuant to Humanitarian Parole may be unable to renew their parole and related work authorization or they may receive Requests for Evidence requesting evidence of their need for Humanitarian Parole. (Renewal of Humanitarian Parole is within DHS’s discretion.) Barring legal challenges or work authorization through alternative avenues such as a pending asylum application, these workers may be terminated for lack of work authorization.
Workers from countries facing TPS termination would need to monitor pending litigation, including when and how to renew TPS. Relevant information about pending litigation, injunctions and steps DHS takes to comply with injunctions is communicated through Federal Register Notices for each country, available at Temporary Protected Status | USCIS.
Employers would need to monitor employment authorization expiration dates, including automatic extensions, for TPS holders that may be impacted by litigation and conduct I-9 re-verifications accordingly.
Creating “Homeland Security Task Forces”
President Trump has signed an EO to establish “federal homeland security task forces” to enable federal, state and local law enforcement to cooperate in removing gang members, criminals and undocumented individuals. The EO also prioritizes execution of the immigration laws against all inadmissible and removable aliens.
We also anticipate increased ICE enforcement actions, including I-9 audits and investigations, employer site visits and raids at workplaces or in immigrant communities to find undocumented workers.
Employers should have an action plan in place in the event of an ICE enforcement action. This is particularly true for employers in industries that employ large numbers of workers who may be undocumented or who have temporary work authorization.
Potential Impact on Employers
Worksite disruptions and absences as undocumented workers or those living in mixed-status families may be concerned about coming to work;
Workers fear detention under the new Laken Riley Act because they have had prior arrests, have been charged with a crime — even if they have not been convicted, or are under investigation for a criminal offense;
In the event of an I-9 audit or investigation, an employer could face civil fines up to $2,789 per form and up to $5,579 for knowingly hiring undocumented workers, for a first offense;
Criminal charges and penalties of up to 10 years and fines of up to $250,000 for harboring undocumented workers;
Debarment from federal contracts; and
Operational disruptions and public relations challenges.
UPDATE: US DOL Order Directing Departments to Cease Enforcement of Affirmative Action Requirements of EO 11246
Following President Trump’s Executive Order “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” on January 24, acting U.S. Department of Labor (DOL) Secretary Vincent Micone issued an agency Order instructing DOL employees to cease and desist “all investigative and enforcement activity” under Executive Order 11246 (Equal Employment Opportunity) as the Secretary said the DOL “no longer has any authority” under the rescinded order. The Secretary further stated that the order applies to “all DOL employees, including the OFCCP, OALJ, and ARB.”
Specifically, the order instructed all DOL employees to:
Cease and desist all investigative and enforcement activity under the rescinded Executive Order 11246 and the regulations promulgated under it. This includes all pending cases, conciliation agreements, investigations, complaints, and any other enforcement-related or investigative activity.
And to:
Notify all regulated parties with impacted open reviews or investigations by January 31, 2025, that the EO 11246 component of the review or investigation has been closed and the Section 503 and VEVRAA components of the review or investigation are being held in abeyance pending further guidance.
The Secretary’s Order follows an official statement issued on January 23 by the Office of Federal Compliance Programs (OFCCP) reiterating President Trump’s revocation of EO 11246 and adding that Federal contractors may continue to comply with the regulatory scheme in effect on January 20, 2025 for 90 days from the date of Trump’s Order. OFCCP also emphasized that that a federal contractor’s obligations under Section 503 of the Rehabilitation Act, 29 U.S.C. 793 (Individuals with a Disability), and the Vietnam Era Veterans’ Readjustment Assistance Act, or VEVRAA (Veterans), 38 U.S.C. 4212, which are separate statutes, “remain in effect,” noting that both laws are “enforced by OFCCP.”
While contractors’ affirmative action obligations related to women and minorities are no longer required, the Secretary’s Order indicates that compliance reviews under Section 503 and VEVRAA (Protected Veterans) are on hold until further notice. Acting Secretary Micone appears to be examining the application of President Trump’s Order with respect to VEVRAA and Section 503. While any interpretation of EO 11246 that broadly expands the Order to VEVRAA and Section 503 almost certainly is an overreach, the use of OFCCP’s authority to investigate and enforce a contractor’s obligations under each law is within the Secretary’s purview. This suggests – but remains to be confirmed – that OFCCP will not require contractors to continue with an open VEVRAA or Section 503 compliance review or check. We think this does not mean a contractor’s obligation to comply with VEVRAA and Section 503 is no longer required, or that OFCCP will necessarily be prohibited from enforcing these and other anti-discrimination laws (more is likely to come). As noted in the General Services Administration’s (“GSA”) January 22 memorandum, Federal contractors must still comply with all nondiscrimination requirements under existing federal laws, which includes VEVRAA, the Rehabilitation Act, Title VII of the Civil Rights Act, the ADEA, the ADA and others.
Questions remain about how OFCCP will manage contractor’s employee data it has collected to date (including affirmative action analyses and EEO-1 data) as well as what effect the Secretary’s ‘cease and desist’ order will have on OFCCP’s response to cases involving EEO-1 freedom of information requests, for example, by the Center for Investigative Reporting (see related court orders in this case here). While we can safely say EO 11246 is no longer in effect, it may be best to wait for additional guidance from the DOL before drawing any final conclusions regarding the procedural and practical implementation of the Order’s revocation as well as further action by the GSA, Department of Defense (DoD) and/or NASA to issue directives and ultimately modify the Federal Acquisition Regulation (FAR) labor standards under FAR Subpart 22.8. GSA has already indicated in its memorandum that “it intends to take immediate action to begin forbearing enforcement of all contract clauses, provisions, terms, and conditions, related to ‘diversity, equity, and inclusion (DEI)”.
New York Data Breach Notification Law Updated
New York Governor Kathy Hochul recently signed into law several bills (S2659B and S2376B) modifying the state’s data breach notification law. The amendments revise the timing requirements for notice to affected individuals, expand the list of regulators to be notified, and add new data elements to New York’s definition of “private information.”
Timing Requirements: Before the amendment, New York’s breach notification law required notification to affected New York residents “in the most expedient time possible and without unreasonable delay.” As of December 21, 2024, the law requires affected individuals to be notified no later than 30 days after discovery of the breach, except “for the legitimate needs of law enforcement.”
Additional Regulator Notice Requirements: Also effective December 21, 2024, the law now requires notice to the New York Department of Financial Services. Previously, the law required notice to the New York State Attorney General, the New York Department of State, and the Division of State Police.
Revised Definition of “Private Information:” Effective March 25, 2025, the definition of “private information” subject to the law’s notification requirements will include (1) medical information (i.e., any information regarding an individual’s medical history, mental or physical condition, or medical treatment or diagnosis by a health care professional) and (2) health insurance information (i.e., an individual’s health insurance policy number or subscriber identification number, any unique identifier used by a health insurer to identify the individual or any information in an individual’s application and claims history, including, but not limited to, appeals history).
HIPAA Exemption: Pursuant to the law’s HIPAA exemption, a breach of protected health information would not trigger additional notification requirements to affected individuals. However, the law still requires notice to certain regulators, including the New York State Attorney General, the New York Department of State, and the Division of State Police. Notably, the HIPAA exemption was not amended and does not reflect the law’s new general requirement to notify the New York Department of Financial Services.
The Impact of AI Executive Order’s Revocation Remains Uncertain, but New Trump EO Points to Path Forward
On January 20, 2025, President Trump revoked a number of Biden-era Executive Orders, including Executive Order 14110 on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (“EO 14110”). We previously reported on EO 14110. The full impact of this particular revocation is still being assessed, but Trump’s newly published Executive Order on Removing Barriers to American Leadership in Artificial Intelligence (“Trump EO”), issued on January 23, specifically directs his advisors to “identify any actions taken pursuant to Executive Order 14110 that are or may be inconsistent with, or present obstacles to, the policy set forth in . . . this order.”
EO 14110, issued by President Biden in 2023, called for a plethora of evaluations, reports, plans, frameworks, guidelines, and best practices related to the development and deployment of “safe, secure, and trustworthy AI systems.” While much of the directive demanded action from federal agencies, it also directed private companies to share with the federal government the results of “red-team” safety tests for foundation models that pose certain risks.
Many EO 14110-inspired actions have already been initiated by both the public and private sectors, but it is unclear the extent to which any such actions should be or have already been halted. It is also unclear whether final rules based, even in part, on EO 14110’s directives—such as the Department of Commerce’s Framework for Artificial Intelligence Diffusion and Health & Human Services’ Health Data, Technology, and Interoperability: Certification Program Updates, Algorithm Transparency, and Information Sharing—are or will be affected.
The as-yet unnumbered Trump EO, issued on January 23, directs the Assistant to the President for Science and Technology, the Special Advisor for AI and Crypto, and the Assistant to the President for National Security Affairs, to “review, in coordination with the heads of all agencies as they deem relevant, all policies, directives, regulations, orders, and other actions taken pursuant to the revoked Executive Order 14110 . . . and identify any actions taken pursuant to Executive Order 14110 that are or may be inconsistent with, or present obstacles to, the policy set forth in section 2 of this order.”
Section 2 of the Trump EO provides: “It is the policy of the United States to sustain and enhance America’s global AI dominance in order to promote human flourishing, economic competitiveness, and national security.” Hunton will continue to monitor for more specific indications associated with Executive Order 14110’s revocation and the Trump EO’s implementation and will share updates accordingly.
President Trump Enacts Regulatory Freeze and Halts Public Communications for Federal Agencies
On January 20, 2025, President Donald Trump signed a memorandum titled, “Regulatory Freeze Pending Review,” imposing a regulatory freeze on all federal agencies.
The key points of the regulatory freeze are as follows:
Do not Propose or Issue Any New Rules: Agencies cannot propose or issue any new rules in any manner, including sending them to the Office of the Federal Register (OFR), until they are reviewed and approved by a department or agency head appointed by the President.
Automatically Withdrawing Unpublished Rules: Any rules that have been sent to the OFR but have not yet been published must be immediately withdrawn to be reviewed by a department head or agency head appointed by the President.
Delay Effective Date of Already Published Rules: For rules that have been published but have not yet taken effect, agencies are to consider postponing their effective date for 60 days to review any questions of fact, law, or policy. During this period, agencies may open a comment period for public input and consider further delaying the rules if necessary.
The freeze applies not only to rules but also to any substantive agency action, including Advanced Notices of Proposed Rulemaking (ANPR), Notice of Proposed Rulemaking, notices of inquiry, and any agency statement of general applicability that sets forth a policy on any regulatory or technical issue.
This freeze will impact all recently proposed rules by requiring them to undergo a review process, which may lead to the rules being withdrawn, modified, or delayed in implementation. The following recently proposed rules or finalized but not yet effective rules issued by FDA include:
Revoking the use of red dye No.3 in food and ingested drugs;Proposed rule regarding front-of-package nutrition labeling;Final rule on the nutrient content claim “healthy”; and
Final rule on requirements for additional traceability (FSMA 204).
Alongside the regulatory freeze, President Trump has directed federal agencies to temporarily stop all public communications. This includes press releases, social media updates, and other public statements. The pause is in effect through February 1.
Keller and Heckman will continue to closely monitor any changes made to pre-existing proposed or finalized rules and any new executive orders or rules promulgated by the new administration.
Massachusetts Enhances Regulatory Oversight of Health Care Transactions on For-Profit and Private Equity Investments
Massachusetts has expanded regulatory oversight of health care transactions by imposing False Claims Act liability on health care owners and investors for changes including failure to disclose violations. On January 8, 2025, Governor Maura Healey signed into law H.5159, An Act enhancing the market review process (the Act). Among other matters, the Act aims to strengthen oversight of private equity investors and related entities in the health care industry, including the expansion of the investigatory and enforcement powers of the Massachusetts Attorney General as they relate to health care activities. The Act also intends to fill perceived gaps in regulatory oversight, that many view as contributors to the Steward Health Care bankruptcy and related hospital closures across Massachusetts, by directly addressing regulation of for-profit health care entities and private equity ownership.
The following Act provisions expand the authority of the Massachusetts Health Policy Commission (HPC), Center for Health Information and Analysis (CHIA), and Attorney General’s Office (AGO) to oversee private equity investors and related entities, including through expansions of HPC’s existing oversight authority and extension of the Commonwealth’s state False Claims Statute (MA FCA) to owners and investors of violators. The Act also contains myriad changes impacting the health care industry. It strengthens regulatory oversight over private equity, pharmacy benefit managers, real estate investment trusts (REITs), management service organizations (MSOs), and other industry participants.
Expansions of HPC and AGO authority under the Act:
Establish new definitions for entities involved in, or related to, private equity operations [1]:
“Health care real estate investment trust,” a real estate investment trust, as defined by 26 U.S.C § 856, whose assets consist of real property held in connection with the use or operations of a provider or provider organization.
“Private equity company,” any company that collects capital investments from individuals or entities and purchases, as a parent company or through another entity that the company completely or partially owns or controls, a direct or indirect ownership share of a provider, provider organization or management services organization; provided, however, that “private equity company” shall not include venture capital firms exclusively funding startups or other early-stage businesses.“Significant equity investor,” (i) any private equity company with a financial interest in a provider, provider organization, or management services organization; or (ii) an investor, group of investors, or other entity with a direct or indirect possession of equity in the capital, stock, or profits totaling more than ten percent of a provider, provider organization, or management services organization; provided, however, that “significant equity investor” shall not include venture capital firms exclusively funding startups or other early-stage businesses.“Management services organization,” a corporation that provides management or administrative services to a provider or provider organization for compensation.
Revise the composition, necessary expertise, and responsibility for appointments to the HPC Board [2]. While the Board will continue to consist of 11 members, the Commissioner of Insurance is now a required member, as are appointed individuals with expertise in representing hospitals and hospital systems and in health care innovation, including pharmaceuticals, biotechnology, or medical devices. However, the HPC will no longer require membership of the Secretary for Administration and Finance, a Primary Care Physician, and an individual with expertise as a health insurance purchaser representing management. Finally, the auditor is no longer responsible for appointments to the HPC Board; all members, other than the Secretary of Health and Human Services and Commissioner of Insurance, will now be appointed solely by the Governor or Attorney General. These changes may reflect a shift in priorities for regulatory oversight of hospital administration, health care innovation, and health care insurance.
Expand the HPC Notice of Material Change process [3]. As previously required, every provider or provider organization must provide notice of a “material change” not less than 60 days before the date of the proposed change.
The previous statutory Notice of Material Change reporting requirements only covered:
mergers or acquisitions of hospitals or hospital systems;
a corporate merger, acquisition or affiliation of a provider or provider organization and a carrier;
an acquisition of insolvent provider organizations; and
mergers or acquisitions of provider organizations which will result in a provider organization having a near-majority of market share in a given service or region [4].
The Act expands the above-referenced statute mandating the reporting of “material change” requiring notice to the applicable government agencies to also include the following as examples:
significant expansions in a provider or provider organization’s capacity;
transactions involving a significant equity investor which result in a change of ownership or control of a provider or provider organization;
significant acquisitions, sales, or transfers of assets including, but not limited to, real estate sale lease-back arrangements; and
conversion of a provider or provider organization from a non-profit entity to a for-profit entity.
The Act also changes the current material change reporting threshold for mergers or acquisitions of a provider organization, which will result in a provider organization having a near-majority market share in a given service or region to provide that the standard is whether the provider organization will have a “dominant market share in a given service or region” (and not a “near-majority”).
Adoption of implementing regulations. While the Act does not include financial thresholds for reporting, the Act does direct the HPC to adopt regulations for administering the section, conduct cost and market impact reviews, and allow filing thresholds to be adopted in the regulations, subject to annual adjustments based on inflation [5].
Expands the HPC Cost and Market Impact Review process as follows:
HPC may now require significant equity investors, as well as other parties involved, in a given transaction to submit documents and information in connection with a Notice of Material Change or Cost and Market Impact Review [6].
HPC may require submitting certain information regarding the significant equity investor’s capital structure, general financial condition, ownership and management structure, and audited financial statements.
HPC may require submitting certain post-transaction data and information for up to five years following the material change date. Such data collection significantly expands the power and task, including the ability to assess post-transaction impacts.
Expands the factors HPC may consider as part of the Cost and Market Impact Review by also reviewing [7]:
the size and market share of any corporate affiliates or significant equity investors of the provider or provider organization;
the inventory of health care resources maintained by the DPH; and
any related data or reports from the Office of Health Resource Planning.
Expands the scope of the HPC’s examination of costs, prices, and cost trends, as follows [8]:
The HPC cost trends hearings will include an examination of any relevant impacts of significant equity investors, health care REITs, and MSOs on costs, prices, and cost trends. Stakeholders from these organizations associated with a provider organization will now be required to testify at the HPC’s annual cost trends hearing concerning: “health outcomes, prices charged to insurers and patients, staffing levels, clinical workflow, financial stability and ownership structure of an associated provider or provider organization, dividends paid out to investors, compensation including, but not limited to, base salaries, incentives, bonuses, stock options, deferred compensations, benefits and contingent payments to officers, managers and directors of provider organizations in the commonwealth acquired, owned or managed, in whole or in part, by said significant equity investors, health care real estate investment trusts or management services organizations.”
The HPC will utilize new data collected as part of the Registered Provider Organization process. The Act revised this process to require submissions from significant equity investors, health care real estate investment trusts, and management services organizations regarding ownership, governance, and organizational information.
Given the broad, sweeping nature of the changes, additional regulations and guidance should be expected.
[1] To be codified at MGL 6D, s. 1.
[2] To be codified at MGL 6D, s. 2.
[3] To be codified at MGL 6D, § 13.
[4] CITE TO EXISTING NMC FORM
[5] To be codified at MGL 6D, s. 13.
[6] To be codified at MGL 6D, s. 13.
[7] To be codified at MGL 6D, s. 13.
[8] To be codified at MGL 6D, ss. 8 and11.
What Contractors Facing Terminations, Stop-Work Orders, and Suspension of Work Orders Directed by the Trump Administration Need to Know
The Trump administration’s directives to “pause” grant funding and to terminate certain grants and contracts sent shock waves through the government contracts and non-profit sectors. Although the “pause” in grant funding has been temporarily halted by a federal court (as of January 28), other terminations and suspensions have not been blocked. We summarize below the steps entities can take to preserve their rights as they navigate these emerging directives.
But First: What Happened?
Immediately after his inauguration on January 20, President Trump began ordering federal agencies to pause funding for certain projects or initiatives. A January 20 Executive Order (“EO”) titled “Unleashing American Energy” encouraged energy exploration and production and eliminated electric vehicle mandates. It directed agencies to “immediately pause” all disbursements under the Inflation Reduction Act of 2022 and the Infrastructure Investment and Jobs Act.
Another EO titled “Ending Radical and Wasteful Government DEI Programs and Preferencing” directed the Office of Management and Budget to terminate DEI programs (see our prior analysis of this EO here). Consequently, the new Department of Government Efficiency announced on January 24 that approximately $420 million in current or impending contracts, most of which related to DEI programs, were cancelled.
Consistent with these orders, the Office of Management and Budget (“OMB”) on January 27 directed federal agencies to pause, as of January 28 at 5:00 PM ET, all payments and obligations to disburse any federal financial assistance, including financial assistance for nongovernmental organizations. The two-page OMB policy memo stated that the paused programs will be assessed to determine whether they are consistent with the administration’s new policy objectives. This directive has led to widespread chaos, prompting the administration to issue additional guidance on January 28 regarding the scope and purpose of the January 27 funding freeze. The freeze on grant funding was then temporarily halted by a federal district court later in the day.
Federal contractors performing contracts or projects subject to these EOs or OMB instructions have or likely will soon receive stop work orders or, in some cases, notices that the government is terminating for convenience. A “suspension of work” or “stop-work” order pauses performance for a period of time, after which the government may decide either to resume performance or terminate the contract. A notice of termination for convenience, as its name suggests, is the mechanism by which the government unilaterally terminates the contract as of right.
Is This Legal?
The breadth and speed of the administration’s directives are unprecedented and raise novel questions regarding both the breadth of the president’s power and whether these actions pass the “arbitrary and capricious” test against which many governmental actions are judged. The U.S. District Court for the District of Columbia has already issued an administrative stay blocking the OMB directive to freeze funding for federal grant programs. If the EOs during the COVID-19 pandemic serve as any guide, we can expect these issues to ultimately make their way to the Supreme Court for resolution.
Beyond the constitutional and administrative law challenges to the Trump administration’s authority to unilaterally halt federal programs, contractors, and non-profits are wondering whether they have any rights under their agreements to challenge a termination. Several bedrock government contracts principles are relevant to this analysis:
With respect to agreements that are terminated, it is important to understand the distinction between the regulations and contract provisions that govern most federal contracts, and the guidance that applies to grants. Federal contracts are governed by the Federal Acquisition Regulation (“FAR”), which recognizes the government’s authority to terminate a contract for convenience (and describes the procedures that follow). As a general rule, the federal government may terminate a contract for any reason, so long as it does not act in bad faith. The authority to terminate a contract for convenience is a nod to the government’s unique position as sovereign. For contractors, challenging a termination for “bad faith” presents a high bar, especially since the law presumes that government officials operate in good faith. In the present circumstances, however, contractors may have success in challenging these directed terminations as based on bad faith, on the theory that the terminations were politically motivated and/or contrary to statutory mandates.
Grants, on the other hand, typically are subject to Uniform Guidance published by OMB and any agency supplements to that guidance. The Uniform Guidance provides that a grant may be terminated “to the extent authorized by law, if an award no longer effectuates the program goals or agency priorities.” 2 C.F.R. § 200.340(a)(4) (emphasis added). In light of the far-reaching impacts on contractors, non-profits, and their workforces and suppliers, Courts may find the “extent authorized by law” caveat a basis to reject arguments that a new Administration has carte blanche to suspend or terminate programs authorized by Congress.
With regard to stop work orders, these orders are generally legal and not uncommon. Here, the focus will be on the breadth of the administration’s stop work orders and their far-reaching impact on companies and their workforces, the policies that the programs were designed to support, and the economy more broadly. We expect to see more litigation with respect to both stop work orders and terminations in the coming weeks, particularly for programs that are mandated by statute.
Will the “Sovereign Acts Defense” Bar Contractors and Grantees from Recovering the Costs Incurred From These Sudden Stop-Work and Termination Notices?
We do not anticipate that the “sovereign acts defense” will prevent contractors and grantees from recovering added costs incurred because of suspensions and terminations we have been seeing this week. The sovereign acts defense is where the government claims that its “general and public” acts as a sovereign made it impossible for the government to perform its obligations as a contractor. The government used this argument successfully to deny many additional costs that contractors bore in response to the COVID-19 crisis, when government lockdowns and health directives impacted contract performance and price. Here, though, the suspensions and terminations directly target federal contracts and grant agreements, and thus, are unlikely to be viewed as “general and public” sovereign acts. The government is also unlikely to be able to assert that its own performance (continued payment of funds previously committed) is impossible.
What Can Contractors and Non-Profits Do Now to Preserve Their Rights?
Monitor court actions blocking terminations or stop-work orders. Contractors should not agree to a termination or stop-work order if it is blocked by a court.
Do not agree to waiver or release language without consulting counsel. Contractors should review stop-work orders, termination notices, and contract modification documents and avoid signing any documents containing waiver or release language that might preclude recovery of costs in the future. Consult legal counsel regarding alternative options. For more on the topic of waivers, please see our prior post here.
Consider whether to bring a legal challenge to the suspension or termination. We recommend consulting legal counsel regarding whether to challenge a suspension or termination based upon the specific impact to the contractor or non-profit.
Provide prompt notice to the government to preserve rights. Pursuant to FAR 52.242-14(c)(1), contractors are not technically required to provide notice of increased costs stemming from a formal suspension order. However, a best practice for FAR-based contracts would be to submit prompt notice (i.e., within 20 days) regardless. This will ensure maximum flexibility in shaping future claims.
Maintain professional communications with government counterparts. Although it may be tempting to commiserate with or seek relief from government counterparts, companies should ensure their communications remain professional as they navigate these transitions. Companies should also consider requesting clarification from their contracting officers in writing (with delivery receipts and read receipts) when ambiguities arise.
Evaluate legal obligations to employees. Employers considering layoffs should evaluate any potentially applicable notice requirements to employees, including under the federal Worker Adjustment and Retraining Notification Act (“WARN Act”), state or local laws, host nation laws for overseas work, or collective bargaining agreements.
Assess the allowability of any new or ongoing costs stemming from the termination. For grant recipients, the Uniform Guidance provides that costs incurred during a suspension or after a termination are not allowable unless expressly authorized in the notice of suspension or termination (or are subject to a limited exception for certain costs that have already been incurred). See 2 C.F.R. § 200.343. This is in contrast to the FAR, which provides that costs “which cannot be discontinued immediately after the effective date of termination are generally allowable” so long as the contractor exercises “reasonable efforts” to discontinue such costs. FAR 31.205-42. Companies should carefully evaluate the applicability of these and other provisions.
Document additional incurred costs and all cost-mitigation efforts. Contractors should carefully document their costs, and all cost-mitigation efforts associated with a stop-work order or termination, including for costs such as idle labor, facilities, and equipment. The analysis will vary depending upon whether the agreement was terminated versus suspended and whether the idle labor, facilities, and equipment are expected to be absorbed by other portions of the business. Contractors should consider engaging legal counsel to conduct a privileged review of the potential recoverability of any such continuing costs based upon the unique facts and circumstances faced by the contractor.
Determine whether inventory can be used elsewhere. While common inventory can sometimes be absorbed by other projects, this may not be the case for entities that are highly reliant upon federally funded work that has been suspended or terminated.
Document compliance costs (g., employee return travel) and prepare to submit a termination settlement proposal, request for equitable adjustment, or claim as applicable. Contractors should maintain detailed records for any new costs they incur as a result of the suspension or termination notice – for example, travel costs to return workers to their country of origin for overseas work, costs of securing idle facilities and equipment, cost of legal and accounting services to ensure compliance with government directives, etc. For agreements that are terminated, the contractor has the right to submit a termination settlement proposal. For agreements that are temporarily suspended, the contractor should plan to submit a request for equitable adjustment and/or claim pursuant to the changes clause and Contract Disputes Act. Note that there is no centralized “board of contract appeals” for grant disputes, so legal options should be evaluated on a case-by-case (and agency-by-agency) basis.
Employment Law This Week: Employment Law Changes Under President Trump [Video] [Podcast]
As featured in #WorkforceWednesday: This week, we are focused on the immediate impact employers face from the rush of Trump administration executive orders, memos, and proclamations.
On January 20, 2025, President Trump began his second term. On his first day back, he signed a record-breaking number of executive orders, many of which have a direct impact on both public- and private-sector employers.
In this week’s episode, we turn to Epstein Becker Green attorney Paul DeCamp to help clients make sense of this flurry of activity. Tune in as Paul outlines what employers can anticipate from Trump 2.0 in the months ahead.
Funding Freeze for Health Care Providers – What You Need to Know
Last night, the Office of Management and Budget (“OMB”) released a memo directing federal agencies to take several actions impacting federal grant programs (outlined in greater detail below) that are resulting in real money consequences for health care providers today. Providers need to be aware of these issues and the challenges ahead. We are already working with several providers to mitigate damages and develop strategies to respond to these updates in real time. Each provider is unique, and every provider will respond to and be impacted by these changes differently.
What Happened?
Late on January 27, 2025, the Trump Administration’s Office of Management and Budget (“OMB”) released a memorandum placing a moratorium on payments for almost all federal grants (the “OMB Memo”).1 OMB explained the justification for this pause as follows:
“Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending “wokeness” and the weaponization of government, promoting efficiency in government and Making America Healthy Again. The use of Federal resources to advance Marxist equity, transgenderism and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”
The OMB Memo directs federal agencies to undertake the following tasks:
Complete a comprehensive analysis of all existing Federal financial assistance programs to determine their alignment with Presidential orders;
During the course of this review, pause (a) the issuance of new awards and (b) the disbursement of federal funds under existing awards. Agencies must also take all other relevant agency actions to comply with this direction and Trump’s executive orders until directed by OMB to do otherwise; and
Every federal financial assistance program must be assigned to a senior political appointee who will evaluate, modify or cancel existing awards that conflict with Administration policies, and ensure adequate oversight over award distribution.
Timeline
January 27, 2025 – OMB Memo issued
January 28, 2025 (5:00 PM) – Funding freeze implemented (on hold)
February 3, 2025 (5:00 PM) – Order halting funding freeze expires
February 7, 2025 – OMB guidance deadline for agency submission of information regarding identified programs with funding or activities planned through March 15, 2025
February 10, 2025 – OMB Memo deadline for agencies to provide detailed information on review of programs
Why Does This Matter for Health Care Providers?
Providers of every type depend on federal grant funds as a key component of their operating and service budgets. Both the Medicaid and CHIP Programs are structured as “grant” programs to the states and are specifically identified by OMB on the list of grant programs to be reviewed.2 Guidance issued today by OMB suggests that Medicaid is a mandatory program that will not be paused, but we have also seen reports from several states, including Illinois, that they are unable to access federal Medicaid funding.3 Regardless of the ultimate outcome, providers can expect temporary uncertainty related to Medicaid funding status.
In addition to major sources of health care coverage, there are innumerable smaller grants that providers rely on to help make ends meet and extend services to their communities, including grants for substance use disorder treatment, provider education and training, telehealth expansion and rural health care services. Without the availability of these programs, even on a temporary basis, health care providers face a difficult operational reality resulting in loss of cash flow, failure to meet payment obligations (even payroll) and service disruption for particularly vulnerable patient populations. We are already aware of providers who have been frozen out of grant portals, and who are unable to draw down funds.
Providers who rely on federal funds should inventory each of their grant programs and determine whether they can still lawfully access funds.4 Keep watching this space – there will be rapid developments over the next several days as providers, state governments and other stakeholders respond. There is a wide array of options available to providers to respond to these changes – if you’re unsure of the best path for your organization, we’re here to help.
As of 3:30pm (MST) A D.C. Federal Judge temporarily blocked Trumps administration from freezing federal grants. More details will be available in the webinar tomorrow.
Temporary Reprieve. Late afternoon, D.C. District Court Judge Loren AliKhan temporarily halted the freeze ordered by the OMB Memo to allow additional time for consideration. Judge AliKhan’s order expires February 3 at 5:00 pm, and there will likely be many further developments over the next week.
[1] Executive Office of the President, Office of Management and Budget, M-25-13 Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs (Jan. 27, 2025).
[2] The OMB Memo specifically exempts Social Security and Medicare, these are the only two express exemptions.
[3] Executive Office of the President, Office of Management and Budget, Untitled FAQ (Jan. 28, 2025).
[4] Executive Office of the President, Office of Management and Budget, Instructions for Federal Financial Assistance Analysis in Support of M-25-13 (Jan. 27, 2025).
DEI and Affirmative Action Programs Blitzed, While Executive Order 11246 Is Revoked
In one of his first acts as President in his second term in office, Donald Trump signed an executive order on January 21, 2025, entitled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (“Order”).
Claiming that “critical and influential institutions of American society … have adopted and actively use dangerous, demeaning, and immoral race- and sex-based preferences under the guise of so-called ‘diversity, equity, and inclusion’ (DEI), or ‘diversity, equity, inclusion, and accessibility’ (DEIA),” the Order directs all executive departments and agencies of the federal government to terminate “all discriminatory and illegal preferences, mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements.” Departments and agencies are also directed to enforce the country’s long-standing civil rights laws and to combat “illegal” private-sector DEI preferences, mandates, policies, programs, and activities. As part of the reset, President Trump revoked Executive Order 11246 (“EO 11246”), which contractually required covered federal government contractors and subcontractors (collectively, “contractors”) to meet certain affirmative action obligations.
Termination of “Illegal” Discrimination in the Federal Government
As part of the Order, President Trump revoked a number of prior executive orders that addressed diversity and equal opportunity in employment.[1] In addition, the Order requires the head of each federal agency to include in every contract or grant award (i) a term requiring all contractual counterparty or grant recipients to agree that their compliance in all respects with all applicable federal anti-discrimination laws is “material” to the government’s payment decisions, and (ii) a term requiring the counterparty or recipient to certify that it does not operate any programs promoting DEI that violate any applicable federal anti-discrimination laws. This is a highly significant representation to be required of all contractors and grantees.
The Trump administration has repeatedly emphasized a disdain for DEI programs. President Trump signed a second executive order entitled “Ending Radical and Wasteful Government DEI Programs and Preferencing,” which requires the Director of the Office of Management and Budget (OMB), assisted by the Attorney General (AG) and the Director of the Office of Personnel Management, to coordinate the termination of all discriminatory programs, including illegal DEI and DEIA mandates, policies, programs, preferences, and activities in the federal government. This order directs the OMB Director to review and revise, as appropriate, all existing federal employment practices, union contracts, and training policies or programs to comply with this order. The order also requires that federal employment practices, including federal employee performance reviews, will reward individual initiative, skills, performance, and hard work and will not under any circumstances consider DEI or DEIA factors, goals, policies, mandates, or requirements. Further, the order mandates agency, department, and commission heads, within 60 days, to terminate all DEI and DEIA offices and positions; all “equity action plans”; all “equity” actions, initiatives, or programs; all “equity-related” grants or contracts; and all DEI or DEIA performance requirements for employees, contractors, or grantees.
Private Sector Encouraged to End Illegal DEI Discrimination and Preferences
President Trump’s Order aimed at ending illegal discrimination also targets the private sector’s DEI programs by encouraging the private sector to “end illegal discrimination and preferences.” According to the Order, illegal DEI and DEIA policies violate federal civil rights laws, undermining national unity and threatening the safety of Americans “as they deny, discredit, and undermine the traditional American values of hard work, excellence, and individual achievement in favor of an unlawful, corrosive, and pernicious identity-based spoils system.”
To that end, the Order directs the heads of all agencies “to advance in the private sector the policy of individual initiative, excellence, and hard work.” In addition, the Order directs the AG to consult with agency heads to propose a strategic enforcement plan that identifies (i) “sectors of concern” within each agency’s jurisdiction, (ii) the “most egregious and discriminatory DEI practitioners in each sector of concern,” and (iii) specific measures to “deter DEI programs or principles (whether specifically denominated “DEI” or otherwise) that constitute illegal discrimination or preferences.” The Order specifically requires that the AG’s report include recommendations from every federal agency that identify up to nine potential civil compliance investigations of publicly traded corporations, large nonprofit corporations or associations, foundations with assets of $500 million or more, state and local bar and medical associations, and institutions of higher education with endowments over $1 billion. It also seeks recommendations for other strategies to encourage the private sector to “end illegal DEI discrimination and preferences and comply with all Federal civil-rights laws,” including litigation that would be “potentially appropriate for Federal lawsuits, intervention, or statements of interest” and potential regulatory action and sub-regulatory guidance.
Revocation of Executive Order 11246
The Order revoked EO 11246, citing a need to ensure that the federal contracting process is “streamlined” to enhance speed and efficiency and reduce costs, and still require contractors to comply with civil rights laws.
Signed into law by President Lyndon B. Johnson on September 24, 1965, nearly 60 years ago, and a year after the passage of the Civil Rights Act of 1964, EO 11246 was intended to complement Title VII and require contractors to take positive steps to ensure that all individuals had an equal opportunity in employment, without regard to race, color, religion, sex, and national origin (the specific characteristics of sexual orientation and gender identity were added by President Barack Obama on July 21, 2014). To accomplish this, EO 11246 required contractors to create affirmative action programs (AAPs) that would serve as a management tool with the central premise that, absent discrimination, over time, a contractor’s workforce would reflect the gender, racial, and ethnic profile of the labor pools from which the contractor recruited and selected its employees.
Federal law, under Title VII, continues to require that all qualified candidates have equal opportunities for employment. However, by revoking EO 11246, the Trump administration has eliminated contractors’ affirmative action obligations. Contractors have until April 21, 2025 (90 days from the Order’s date of issuance) to wind down their AAPs. In addition, the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), which enforced EO 11246, must immediately cease promoting “diversity,” holding contractors responsible for taking “affirmative action,” and permitting contractors to engage in “workforce balancing based on race, color, sex, sexual preference, religion, or national origin.”
While a Fact Sheet addressing the Order “directs all [federal] departments and agencies to take strong action to end private sector illegal DEI discrimination, including civil compliance investigations,” it remains to be seen how the OFCCP will operate moving forward. This includes its enforcement of the affirmative action provisions of the Rehabilitation Act of 1973 (the “Rehabilitation Act”) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA), neither of which are addressed in the Order and, as a result, presumptively remain in effect.
What Employers Should Do Now
Private-sector employers should expect the Trump administration’s efforts to eliminate DEI programs to fuel legal challenges to DEI efforts, including via “reverse discrimination” lawsuits.
Private-sector employers should promptly review any DEI/DEIA plans, programs, and policies, as well as their AAPs, to determine whether they contain any aspects that could be deemed unlawful under Title VII or any other federal, state, or local civil rights law, and consider whether to take any action to modify such plans, programs, or policies, including the names of such plans, programs, or policies, in consultation with employment counsel.
Employers that include affirmative action and/or DEI/DEIA goals as a rating factor in employees’ (and particularly managers’ or supervisors’) performance or salary reviews should consider removing any such factors.
Contractors should take steps to ensure that they are able to wind down their EO 11246-required AAPs and seek direction from counsel as we await clarification about the OFCCP’s authority, how the Rehabilitation Act and VEVRAA AAPs will be monitored and enforced, the status of pending compliance reviews, and how reporting obligations will be addressed. This could include EEO-1 reports, which are required pursuant to Title VII but are shared with and used by the OFCCP.
Employers that are state and municipal contractors should keep in mind that they may have some remaining obligations around affirmative action under their government contracts.
Although affirmative action as we knew it pursuant to EO 11246 may no longer exist, Title VII remains the law of the land and all employment decisions should continue to be made without consideration of race, color, religion, sex, or national origin, as well as other factors protected by federal, state, and local law. Employers should continue to ensure that management and staff are providing equal opportunity in employment and are being trained accordingly.
Employers should be advised that nothing in President Trump’s executive orders bars employers from taking race- and gender-neutral steps in connection with recruiting, such as casting a broad applicant net considering applicants’ varied experiences, perspectives, and viewpoints, or offering scholarships or work/study programs based on financial need, so long as any such strategies and programs do not promote preferences to applicants based on factors such as race or sex.
There is clearly more to come, including the possible elimination of the OFCCP. Stay tuned—we will update you as further developments unfold and outstanding questions are addressed.
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Staff Attorney Elizabeth A. Ledkovsky contributed to the preparation of this Insight.
ENDNOTE
[1] The Order revoked the following executive orders: (i) Executive Order 12898 (Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, February 11, 1994); (ii) Executive Order 13583 (Establishing a Coordinated Government-wide Initiative to Promote Diversity and Inclusion in the Federal Workforce, August 18, 2011); (iii) Executive Order 13672 (Further Amendments to Executive Order 11478, Equal Employment Opportunity in the Federal Government, and Executive Order 11246, Equal Employment Opportunity, July 21, 2014); and (iv) The Presidential Memorandum (Promoting Diversity and Inclusion in the National Security Workforce, October 5, 2016).
Breaking: In a Novel Move, President Trump Fires National Labor Relations Board Member and, following Biden precedent, the NLRB General Counsel
On January 27, 2025, President Trump fired National Labor Relations Board (“NLRB” or “Board”) Member Gwynne A. Wilcox, marking the first time that a president has ever attempted to remove a Board member prior to the end of their five-year term. The move – if it withstands court scrutiny – leaves the Board with only two (2) remaining members: Chair Marvin E. Kaplan and Member David M. Prouty and without a quorum to rule on matters, as covered here. See New Process Steel, L.P. v. NLRB, 560 U.S. 674 (2010). Chair Kaplan’s term lasts through August 27, 2025, and Member Prouty’s term lasts through August 27, 2026.
This came soon after President Trump fired NLRB General Counsel Jennifer A. Abruzzo. As reported here, the firing of GC Abruzzo was expected and has been held to be lawful in various Circuit Courts. However, the firing of Board Member Wilcox sets up a constitutional fight regarding President Trump’s removal power.
Section 3(a) of the NLRA states that “[a]ny member of the Board may be removed by the President, upon notice and hearing, for neglect of duty or malfeasance in office, but for no other cause,” which has led prior presidents to refrain from firing sitting Board members. It is expected that the administration will argue that this removal requirement is unconstitutional under Article II, which requires that the president “shall take Care that the Laws be faithfully executed,” meaning the president cannot be prohibited from hiring and firing certain administrative officials, such as Board members, at will. Employers have made similar arguments as to the alleged unconstitutional nature of the NLRA’s removal requirements, as previously reported here, here, and here.
President Trump will likely appoint an Acting General Counsel in the near future and nominate a new General Counsel soon after, subject to Senate approval. It is less certain what President Trump will do concerning the three (3) vacant seats on the Board, who also would need to be nominated subject to Senate approval. Historically, the administration’s party has had three (3) of the five (5) seats. If President Trump does choose to appoint new members, there is an obvious question of whether he will continue this precedent or rather appoint only Republican members to the seats.
While in the short term, some parties with matters pending before the Board may have some relief, the longer term implications of a complete standstill at the Board and the resulting uncertainty can actually be very difficult for organizations looking to move forward and make decisions on both day-to-day employment matters and large scale initiatives.
State of Play: Temporary Pause of Agency Grants, Cooperative Agreements, Loans, and Other Financial Assistance Programs
UPDATE: As of 5:00 PM EST on January 28, a federal judge has temporarily blocked the Trump administration from enforcing the freeze detailed below. This situation is ongoing and clients should still prepare accordingly.
On Monday evening, the Office of Management and Budget (OMB) ordered all federal agencies to temporarily suspend grants, cooperative agreements, and loan payments, with the exception of Social Security, Medicare, and “assistance provided directly to individuals.” In the internal memo, OMB’s Acting Director, Matthew Vaeth, calls for each agency to undertake a comprehensive analysis to ensure all financial assistance programs comply with the Administration’s Executive Orders. The pause applies to an estimated 2,600 accounts across the federal government, and details are still being worked out on federal funding that is statutorily obligated.
While intended to be temporary, the duration of the pause may vary by Department and program. Each federal department and agency are likely to interpret its scope and requirements differently and prioritize review of certain programs before others. This pause may have a profound effect on clients who were expecting to receive federal funds within the next two to six weeks. While the pause has the potential to affect any business or entity receiving federal funding, clients receiving such funds as part of programs related to DEI initiatives, foreign aid, or federal clean energy investments, specifically electric vehicles, may be most impacted.
Some of the questions agencies must answer in the report for OMB include whether or not the program supports illegal immigrants, if the program supports abortion, gender ideology or DEI initiatives, or if the program supports activities that impose an undue burden on the identification, development, or use of domestic energy resources. It is important to note that only a handful of President Trump’s cabinet secretaries and agency heads have been confirmed, making this process all the more complicated.
Key Facts
All affected federal assistance will be paused starting today, January 28, at 5:00 pm ET.
This affects ALL federal agencies.
The government-wide freeze is temporary and is intended to allow each agency to conduct a comprehensive analysis of all federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s Executive Orders.
Agencies have until February 10, 2025, to submit to OMB detailed information on each program subject to this pause.
The freeze will include:
Issuance of new awards;
Disbursement of Federal funds under all open awards; and
Other relevant agency actions that may be implicated by Trump’s Executive Orders until OMB has reviewed and provided guidance based on what is received.
Could this Affect You?
Yes, if your business receives federal grants, cooperative agreements, or loans, the pause will almost certainly affect you until at least February 10th and potentially beyond. If your company is concerned about the funding pause, or you are impacted by any of the recent Executive Orders, it is critical to determine the risk posed by the pause or Executive Order and to develop a response that evaluates both their legal and political options.