The Department of Defense has issued a statement in response to the Office of Management and Budget (OMB) Memorandum titled "Temporary Pause of Agency Grant, Loan, and Other Financial Assistance," dated January 27, 2025. The department is currently reviewing this memorandum as directed.
"The Department is currently reviewing the OMB Memorandum, 'Temporary Pause of Agency Grant, Loan, and Other Financial Assistance,' dated January 27, 2025. As directed by the memorandum, the Department will expeditiously analyze its financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President's executive orders."
In accordance with instructions from the OMB memo M-25-13 on financial assistance instruments, there will be a temporary pause on activities related to the obligation or disbursement of financial assistance. This pause will occur only to the extent permissible under applicable law.
However, it is important to note that this directive does not affect contracts. "The scope of the OMB M-25-13 memo on financial assistance instruments does not include contracts. Contrary to certain media accounts, the Department of Defense has not paused contract awards."
The department reassures that new contracts continue to be awarded as needed for mission requirements. "The Department continues to award new contracts to fulfill validated mission needs."
While no specific contracts or activities have been identified as affected at this time, there remains a possibility that some could be paused if they fall within the guidance provided by the memorandum.
"We look forward to providing more details regarding this matter as they develop and become available."
