Breaking: Trump Administration Rescinds Pause of Federal Assistance Programs
UPDATE: As of Wednesday morning, January 29, news organizations are reporting that the Trump Administration has rescinded its previous order to pause all federal assistance programs. This is a rapidly changing story and we will keep you up to date as we receive new information.
What follows is a summary of this story as it developed over the past two days:
As you may have seen in the news in the last 48 hours, the Office of Management & Budget (OMB) under the Trump Administration issued a memo late Monday night directing each federal agency to “complete a comprehensive analysis of all their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the Presidents’ executive orders.” As they conduct this analysis, OMB has also directed a temporary pause on all federal financial assistance programs that may be impacted by the President’s new executive orders.
Yesterday, a federal judge temporarily halted the order. This ruling was a “brief administrative stay” and only ran through Monday, February 3. That order only applied to “open awards”, or funds that were already slated to be disbursed. Funding that had not been awarded would not proceed.
This is a rapidly changing situation. Our partners at AHCA/NCAL have created this summary of what we know so far:
Medicaid
Initially, it was clear that this pause did not impact Medicare or Social Security, but whether it impacted Medicaid was uncertain. OMB issued follow up guidance today explicitly stating that “mandatory programs like Medicaid and SNAP will continue without pause.”
Nonetheless, yesterday all 50 states reported that they were unable to access their Medicaid portals. Politico reports that the portals are back online this morning. AHCA/NCAL will be working with state affiliates to understand the impact and extent of any payment delays, so issues can be escalated to policymakers.
Other Programs Impacted
OMB also issued a detailed spreadsheet listing the federal programs impacted by this pause. This is an extremely long and detailed list across multiple federal agencies. AHCA/NCAL is reviewing the list and will highlight any specific areas in which long term and post-acute care may be impacted. WHCA will keep our members informed as we learn more.
How Long Will This Last?
The pause was slated to go into effect at 5:00pm EST yesterday but was temporarily halted by a federal judge minutes before. The brief administrative stay by the federal judge lasts through Monday, February 3rd, when the Court will hold another hearing to determine next steps.
OMB has also directed federal agencies to submit reports about federal grant programs by February 10th for review. How long the Administration will take to conduct their review and take further action remains uncertain.
In addition to the U.S. District Court case that temporarily blocked the order late yesterday, a group of attorneys general said Tuesday they will seek an injunction blocking the freeze.
We understand this may cause some providers, states, and other stakeholders confusion and uncertainty. We will do everything within our power to encourage clarity, consistency, and continuity, so that our members have the resources they need. We will keep you apprised as we learn more.
