{"id":2732,"date":"2025-02-20T08:48:09","date_gmt":"2025-02-20T13:48:09","guid":{"rendered":"https:\/\/www.mgocpa.com\/?post_type=perspective&#038;p=2732"},"modified":"2025-07-17T16:03:50","modified_gmt":"2025-07-17T21:03:50","slug":"federal-assistance-updates-next-steps","status":"publish","type":"perspective","link":"https:\/\/www.mgocpa.com\/perspective\/federal-assistance-updates-next-steps\/","title":{"rendered":"Federal Assistance Updates and Next Steps"},"content":{"rendered":"\n<p><strong>Key Takeaways:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>New Executive Orders are reshaping federal funding, impacting energy projects, foreign aid, and diversity programs while agencies work to align with new policies.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Office of Management and Budget (OMB)&nbsp;has issued multiple directives, including temporary pauses on financial assistance, foreign aid, and federal hiring, with legal challenges leading to injunctions and policy revisions.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>State and local governments must stay updated as funding reviews, policy shifts, and ongoing legal actions continue to influence federal assistance programs.<\/li>\n<\/ul>\n\n\n\n<p><strong>&#8212;<\/strong>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Presidential Actions<\/h2>\n\n\n\n<p>The new Administration has begun its new term with multiple Executive Orders (EO). Many of the Orders will have direct impact across various industries including infrastructure, foreign assistance, energy and environmental projects.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Executive Order titled \u201c<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/unleashing-american-energy\/\" target=\"_blank\" rel=\"noreferrer noopener\">Unleashing American Energy<\/a>\u201d will have a significant impact on current projects and what projects continue to receive federal funding in the energy sector.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EO titled \u201c<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/reevaluating-and-realigning-united-states-foreign-aid\/\" target=\"_blank\" rel=\"noreferrer noopener\">Reevaluating and Realigning United States Foreign Aid<\/a>\u201d has put an immediate stop on all foreign assistance programs including acquisition and assistance for a period of 90 days to give the government an opportunity to review programmatic efficiencies and consistency with United States foreign policy.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Offshore wind leasing will also be impacted by a separate Executive Order titled \u201c<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/temporary-withdrawal-of-all-areas-on-the-outer-continental-shelf-from-offshore-wind-leasing-and-review-of-the-federal-governments-leasing-and-permitting-practices-for-wind-projects\/\" target=\"_blank\" rel=\"noreferrer noopener\">Temporary Withdrawal from all areas on the outer continental shelf from offshore wind leasing and review of the federal government\u2019s leasing and permitting practices for wind projects<\/a>\u201d.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Two Executive Orders titled \u201c<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/reforming-the-federal-hiring-process-and-restoring-merit-to-government-service\/\" target=\"_blank\" rel=\"noreferrer noopener\">Reforming the federal hiring process and restoring merit to government service<\/a>\u201d and \u201c<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/ending-illegal-discrimination-and-restoring-merit-based-opportunity\/\" target=\"_blank\" rel=\"noreferrer noopener\">Ending Illegal Discrimination and restoring Merit-based opportunity<\/a>\u201d related to Diversity Equity Inclusion (DEI) programs will also impact federally-funded programs and recipients.<\/li>\n<\/ul>\n\n\n\n<p>While the freeze in grant payments initially announced by the Office of Management and Budget (OMB) has been rescinded, the administration is focused on reviewing ongoing and announced financial assistance programs in order to ensure alignment with the Executive Orders.<\/p>\n\n\n\n<p>BDO is maintaining <a href=\"https:\/\/airtable.com\/appvccc1sjVb4hFjD\/shrQsPx0Po88XwimV\/tblH9QNn5loLty5YD\" target=\"_blank\" rel=\"noreferrer noopener\">a list of Executive Orders<\/a> that may impact clients by sector. Agencies have been working actively since January 20, 2025, to ensure all federal spending is in compliance with the Executive Orders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Implementing the Executive Orders<\/h2>\n\n\n\n<p>OMB has been leading this effort and has been issuing guidance to Agencies on a regular basis to provide next steps and to keep stakeholders informed. The table below provides a summary of the White House and OMB\u2019s activities since the initial EOs were first published on January 20, 2025, and will be updated as new information is announced.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Date of OMB Memo<\/strong>&nbsp;<\/td><td><strong>Number\/Title<\/strong>&nbsp;<\/td><td><strong>Summary<\/strong>&nbsp;<\/td><td><strong>Agency Actions<\/strong>&nbsp;<\/td><td><strong>Notes for Recipients<\/strong>&nbsp;<\/td><\/tr><tr><td>January 21, 2025&nbsp;<\/td><td><a href=\"https:\/\/www.whitehouse.gov\/briefings-statements\/2025\/01\/omb-memo-m-25-11\/\" target=\"_blank\" rel=\"noreferrer noopener\">M-25-11<\/a>&nbsp;<\/td><td>This memo provides clarification related to EO titled \u201cUnleashing American Energy\u201d and clarifies that all funding under IRA<sup>[<\/sup><sup>1]\u202f<\/sup>and IIJA<sup>[<\/sup><sup>2]\u202f<\/sup>is not impacted by the immediate pause required by Section 7 of the EO. The pause only applies to programs and activities that may be implicated by the policy objectives listed in section 2 of the EO.&nbsp;<\/td><td>All federal agencies that are involved in disbursement of funds under IRA and IIJA will be required to review those programs to see if they are impacted by the policy established in Section 2 of the order.&nbsp;<\/td><td>If you have a program that receives funding under IRA and IIJA, please review Section 2 of the EO carefully. Further clarification was also provided by OMB as summarized below.&nbsp;<\/td><\/tr><tr><td>January 26, 2025&nbsp;<\/td><td><a href=\"https:\/\/www.state.gov\/implementing-the-presidents-executive-order-on-reevaluating-and-realigning-united-states-foreign-aid\/\" target=\"_blank\" rel=\"noreferrer noopener\">Press Statement, Secretary of State<\/a>&nbsp;<\/td><td>Secretary of State ordered an immediate pause on all foreign aid programs to implement EO titled \u201cReevaluating and Realigning United States Foreign Aid\u201d.&nbsp;<\/td><td>Department of State (State) and United States Agency for International Development (USAID) has since issued Stop work Orders (SWO)\/Suspension notices to ALL programs that use foreign aid funding.&nbsp;<\/td><td>State and USAID have been sending SWO notices to all implementers. Notices were also issued via\u202f<a href=\"https:\/\/www.usaid.gov\/partner-with-us\/resources-for-partners\/implementing-partner-notices-portals\" target=\"_blank\" rel=\"noreferrer noopener\">Implementing Partner Notices Portals (IPN)<\/a>. \u202fPlease stay on top of all communication from your relevant agency.&nbsp;<\/td><\/tr><tr><td>January 27, 2025&nbsp;<\/td><td><a href=\"https:\/\/erik.osu.edu\/sites\/default\/files\/documents\/2025\/01\/Temporary%20Pause%20of%20Agency%20Grant%2C%20Loan%2C%20and%20Other%20Federal%20Assisitance%20Programs.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">M-25-13<\/a>&nbsp;<\/td><td>This memo was ordered a temporary pause on ALL federal financial assistance payment with noted exceptions for benefits paid directly to individuals, Medicare and social security benefits.&nbsp;<\/td><td rowspan=\"3\">Per the instruction provided, each agency must provide information to OMB by February 7, 2025, for all programs related to financial actions that can be expected under each program before March 15, 2025. A list of questions have been included to assist in determining if the program activities may be in non-compliance with any of the EOs issued. \u202f \u202f\u202f&nbsp;<\/td><td>\u202f&nbsp;<\/td><\/tr><tr><td>January 28, 2025&nbsp;<\/td><td><a href=\"https:\/\/static01.nyt.com\/newsgraphics\/documenttools\/efb74532cbcf3060\/fca0687f-full.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Instructions to Agencies for Financial Assistance Analysis<\/a>&nbsp;<\/td><td>OMB shared a list of all current projects with agencies and provided a deadline of February 7, 2025, to complete information requested for each program.&nbsp;<\/td><td>\u202f&nbsp;<\/td><\/tr><tr><td>January 28, 2025&nbsp;<\/td><td><a href=\"https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/01\/omb-q-a-regarding-memorandum-m-25-13\/\" target=\"_blank\" rel=\"noreferrer noopener\">Q&amp;A Clarification on M-25-13<\/a>&nbsp;<\/td><td>OMB issued clarification regarding M-25-13 to explain that all federal assistance is not paused, and only programs that are in non-compliance with EOs are paused. The list of exceptions was also broadened to include Medicaid, SNAP benefits, PELL grants, federal loans and rental assistance.&nbsp;<\/td><td>\u202f&nbsp;<\/td><\/tr><tr><td>January 28, 2025; 4:00 PM&nbsp;<\/td><td>Federal Judge blocks the freeze on federal assistance that was ordered under OMB M-25-13 through an \u201cadministrative stay\u201d&nbsp;<\/td><td>The order was issued to block the temporary pause on federal assistance till Feb 3, 2025, when the judge had scheduled a second hearing.&nbsp;<\/td><td>\u202f&nbsp;<\/td><td>\u202f&nbsp;<\/td><\/tr><tr><td>January 28, 2025&nbsp;<\/td><td><a href=\"https:\/\/www.state.gov\/emergency-humanitarian-waiver-to-foreign-assistance-pause\/\" target=\"_blank\" rel=\"noreferrer noopener\">Waiver issued for life-saving humanitarian assistance<\/a>&nbsp;<\/td><td>As a part of the review process, Secretary of State issued a temporary waiver for life-saving foreign assistance programs including PEPFAR.&nbsp;<\/td><td>This is a temporary waiver. It also includes exceptions for abortion, DEI, migrant and refugee assistance activities (other than repatriation activities)&nbsp;<\/td><td>New contracts are not covered under this waiver. The waiver only allows continuing work under current projects.&nbsp;<\/td><\/tr><tr><td>January 29, 2025&nbsp;<\/td><td><a href=\"https:\/\/www.cogr.edu\/sites\/default\/files\/OMB%20M-25-14.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">OMB Memo M-25-14<\/a>&nbsp;<\/td><td>This memo rescinded M-25-13 with immediate effect and instructs Agencies to contact their General Counsel with any questions regarding implementing the EOs.&nbsp;<\/td><td>\u202f&nbsp;<\/td><td>\u202f&nbsp;<\/td><\/tr><tr><td>January 31, 2025&nbsp;<\/td><td><a href=\"https:\/\/www.rid.uscourts.gov\/sites\/rid\/files\/proposed%20TRO.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Temporary Restraining Order (TRO) by US District Court, Rhode Island<\/a>&nbsp;<\/td><td>A judge in Rode Island issued a TRO for 14 days expiring on February 14,2025 when the judge may rule on a preliminary injunction. During the TRO period, the judge has ordered the US government to refrain from pausing, freezing, blocking or canceling any legal obligations under existing federal financial awards.&nbsp;<\/td><td>This order is not a decision on merit of the matter, and did not refer to a OMB memo. This is a temporary measure to give both sides time to prepare and argue the matter on merit.&nbsp;<\/td><td>\u202f&nbsp;<\/td><\/tr><tr><td>February 02, 2025&nbsp;<\/td><td><a href=\"https:\/\/gfoaorg.cdn.prismic.io\/gfoaorg\/Z5kxypbqstJ999W0_FILE_0174.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Treasury<\/a>\u202fAccess by DOGE&nbsp;<\/td><td>DOGE now has access to the federal payments systems for all federal payments. Multiple posts and news media have been reporting that DOGE will be stopping federal payments.&nbsp;<\/td><td>It is yet to be seen which payments are actually being stopped considering the TRO is still in place.&nbsp;<\/td><td>\u202f&nbsp;<\/td><\/tr><tr><td>February 03, 2025&nbsp;<\/td><td><a href=\"https:\/\/www.councilofnonprofits.org\/files\/media\/documents\/2025\/dc-order-tro-2-3-2025.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Second TRO issued by DC federal judge to unfreeze federal funds.\u202f<\/a>&nbsp;<\/td><td>DC Federal Court held a follow-up hearing to the administrative stay issued on January 28, 2025, and issued this TRO. \u202f\u202f&nbsp;<\/td><td>OMB was required to inform all agencies on this order.\u202f&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>February 03, 2025&nbsp;<\/td><td><a href=\"https:\/\/www.g5.gov\/G5HELP\/RI_TRO_Notice.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Agency\u2019s notice to all employees and contractors<\/a>&nbsp;<\/td><td>This notice summarizes the court order dated January 31, 2025.\u202f&nbsp;<\/td><td>The important take away from this memo is that while the federal agencies cannot pause awards and obligations on the basis of the OMB memo, each agency may exercise their own authority to pause awards and obligations.&nbsp;<\/td><td>It is not clear which projects are under review. We do recommend making sure you have access to your payment systems, and are able to submit reimbursement requests or drawdown requests.\u202f&nbsp;<\/td><\/tr><tr><td>February 06, 2025&nbsp;<\/td><td><a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/02\/memorandum-for-the-heads-of-executive-departments-and-agencies\/\" target=\"_blank\" rel=\"noreferrer noopener\">Review of all funding provided to NGOs<\/a>&nbsp;<\/td><td>This short presidential memo directs all agency heads to review any and all funding provided to NGOs.\u202f&nbsp;<\/td><td>Agency heads are being required to stop funding NGOs that undermine national interest.\u202f&nbsp;<\/td><td>This is a very broad directive, agency guidance is yet to be seen.\u202f&nbsp;<\/td><\/tr><tr><td>February 07, 2025&nbsp;<\/td><td><a href=\"https:\/\/grants.nih.gov\/grants\/guide\/notice-files\/NOT-OD-25-068.html\" target=\"_blank\" rel=\"noreferrer noopener\">NOT-OD-25-068<\/a>&nbsp;<\/td><td>NIH limited indirect rates for all new grants to a flat 15%. The rate will also be implemented for existing grants effective February 10, 2025.\u202f&nbsp;<\/td><td>This action updates the guidance NIH had issued previously in November 2024.\u202f&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>February 10, 2025&nbsp;<\/td><td><a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/02\/pausing-foreign-corrupt-practices-act-enforcement-to-further-american-economic-and-national-security\/\" target=\"_blank\" rel=\"noreferrer noopener\">Executive Order issued directing Pause on FCPA enforcement<\/a>&nbsp;<\/td><td>180 days pause on enforcement of Foreign Corrupt Practices Act.\u202f&nbsp;<\/td><td>AG to evaluate enforcement and investigation guidelines.&nbsp;<\/td><td>No immediate impact on recipients, but may have long term implications for working in foreign areas.&nbsp;<\/td><\/tr><tr><td>February 10, 2025&nbsp;<\/td><td>Court case filed to unblock foreign aid funding.&nbsp;<\/td><td>2 Non-profits have filed a case in DC federal court against the abrupt freeze on foreign aid.\u202f&nbsp;<\/td><td>Information not available yet.\u202f&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>February 10, 2025&nbsp;<\/td><td><a href=\"https:\/\/oig.usaid.gov\/node\/7439\" target=\"_blank\" rel=\"noreferrer noopener\">USAID OIG issues report on impact of freeze on foreign aid<\/a>&nbsp;<\/td><td>OIG summarized that the actions taken to dismantle USAID including staff cuts and SWO on awards is putting $8.2 Billion at risk. \u202f&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>February 10, 2025&nbsp;<\/td><td>TRO issued to block NOT-OD-25-068&nbsp;<\/td><td>A federal judge in Boston issued a TRO to block the indirect rate cuts till February 21, 2025&nbsp;<\/td><td>This is a temporary order to allow or both parties to present arguments in court on February 21, 2025.\u202f&nbsp;<\/td><td>&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>OMB and federal agencies are working quickly to implement these actions and the situation is evolving. We will update this page with new information as it is released.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Does This Mean for Ongoing Projects<\/h2>\n\n\n\n<p>The Executive Orders lay out policy objectives for the agencies. OMB\u2019s instructions to the agencies have provided direction on next steps to start reviewing all existing programs to ensure compliance with EOs. The Agencies may contact specific projects with questions to assist them with completing the information requested by OMB. The best action for implementers and recipients is to be responsive to their program officers and OAA communication.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What To Expect in the Review Process<\/h2>\n\n\n\n<p>Below is a list of questions that OMB has asked agencies for current projects.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Anticipated obligations or disbursements before March 15, 2025, including any statutory requirements for such obligation\/disbursements?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Does the program provide any direct or indirect support to removable illegal aliens?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Does the program provide assistance overseas?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Does the project have funding under the U.S. International Climate Finance Plan?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Does the program put an undue burden on identification, development or use of domestic energy resources (including programs under IRA and IIJA)?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Does the program have DEI or Community Benefits Program (CBP) related activities?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Does the program promote gender ideology?<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Does the program promote or support abortion?<\/li>\n<\/ul>\n\n\n\n<p>While the review will be done by the agency at the program scale, these questions may prepare you on possible requests for information that the agency may need to respond to the OMB request in a timely manner and provide insight into the potential future for the program.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Does a Suspension\/Stop Work Order (SWO) Mean for the Project?<\/h2>\n\n\n\n<p>If you are one of the projects that have already received a suspension or a Stop Work Order (SWO), this does not mean a full suspension of all activities. Each project should carefully read the instructions received from the Agreement Officer and discuss which costs are considered legally or operationally essential during the suspension. In your internal review, take into consideration the questions listed above in addition to any legal obligations that have been made, fixed operational costs, costs of termination, impact on subcontractors and awards, and third-party commitments. Staff considered essential and mandatory, and any legal obligations toward such staff, should be taken into consideration as well.<\/p>\n\n\n\n<p>The review, suspension and stop work process will be very specific to each project, so it is advisable to cooperate and engage actively with your government counterparts to avoid missteps.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How MGO Can Help<\/h2>\n\n\n\n<p>Our <a href=\"https:\/\/www.mgocpa.com\/solution-industry\/state-and-local-government\/\" target=\"_blank\" rel=\"noreferrer noopener\">State and Local Government<\/a> team is closely monitoring federal funding changes as the situation evolves. If you have questions, concerns, or need guidance, <a href=\"https:\/\/www.mgocpa.com\/solution-industry\/state-and-local-government\/#lets-talk\" target=\"_blank\" rel=\"noreferrer noopener\">reach out to us today<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><em>Written by Andrea Espinola Wilson and Pushmeet Bhatia. Copyright \u00a9 2025 BDO USA, P.C. All rights reserved. www.bdo.com<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways: &#8212;&nbsp; Presidential Actions The new Administration has begun its new term with multiple Executive Orders (EO). Many of the Orders will have direct impact across various industries including infrastructure, foreign assistance, energy and environmental projects. While the freeze in grant payments initially announced by the Office of Management and Budget (OMB) has been [&hellip;]<\/p>\n","protected":false},"featured_media":2766,"template":"","meta":{"_acf_changed":false,"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"perspective_topic":[113],"perspective-type":[42],"class_list":["post-2732","perspective","type-perspective","status-publish","has-post-thumbnail","hentry","perspective_topic-state-and-local-government","perspective-type-articles"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Federal Assistance Updates for State and Local Government - MGO CPA | Tax, Audit, and Consulting Services<\/title>\n<meta name=\"description\" content=\"Get the latest updates on federal assistance programs and discover strategic next steps for navigating compliance and reporting.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mgocpa.com\/perspective\/federal-assistance-updates-next-steps\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Federal Assistance Updates for State and Local Government - 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