Trump Administration Freezes Billions of Dollars in Federal Grants and Loans

On January 20, 2025, President Trump signed an executive order eliminating all federal activity related to Diversity, Equity, and Inclusion (DEI), Diversity, Equity, Inclusion, and Accessibility (DEIA), and environmental justice. That same day, he signed another executive order pausing the disbursement of Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act funding and calling for a review of grant and loan programs established under those Acts.

On January 28, the White House Office of Management and Budget (OMB) issued a memo directing all federal agencies to pause disbursements under federal grant and loan programs and assess whether the programs were “consistent with the President’s policies and requirements.”

Researchers who rely on federal grant funding expressed concern that their funding agencies could order them to halt current projects at any time in accordance with the executive order, which did not clearly define DEI, DEIA, or environmental justice. Some research institutions have recommended that researchers “censor their research proposals, publications and public-facing documents” and use synonyms for biodiversity, diversity, equity, inclusion, climate change, greenhouse gas emissions, and other terms that could be flagged by the administration.

Update: On January 27, 2025, the National Science Foundation (NSF) froze all grant payments, including funding for grants that had already been awarded. 

Update: On January 28, 2025, US District Court Judge Loren AliKhan temporarily blocked the funding freeze.

Update: On January 29, 2025, OMB rescinded the January 28th memo.

Update: On January 31, 2025, US District Court Judge John J. McConnell, Jr. issued a temporary restraining order blocking the freeze on grant funding.

Update: As of February 6, 2025, grant recipients across the country reported that they were still unable to access funds for climate and clean energy programs funded by the Department of Energy.

Update: On February 10, 2025, Judge McConnell found that the Trump administration was still "improperly freez[ing] federal funds and refus[ing] to resume disbursement of appropriated federal funds."

Update: On February 13, 2025, Pennsylvania Governor Josh Shapiro sued the Trump administration, arguing that billions of dollars of Congressionally-approved federal funding for the state had not been restored, despite court orders to do so.

Update: On February 24, 2025, Governor Shapiro announced that more than $2 billion in federal funding had been released to Pennsylvania, but that the lawsuit would continue to ensure that the “Trump Administration [would be required] to comply with its legal obligations.”

Update: On February 25, 2025, Judge AliKhan indefinitely blocked the funding freeze, prohibiting the administration from “implementing, giving effect to, or reinstating [the freeze] under a different name.”