Federal Funding Freeze Sparks Uncertainty, But HUD Clarifies Impact on Housing Programs

On January 27, The Office of Management and Budget sent a vague two-page memo to all federal agencies yesterday evening directing them to halt all activities related to the obligation or disbursement of all Federal financial assistance that could directly impact President Donald Trump’s Executive Priorities. M-25-13 sent a firestorm through many industries, including multifamily housing, as conflicting information circulated regarding which federal housing programs would be affected by the freeze.

HUD clarified on January 28 that project-based rental assistance programs are not affected by the freeze and that the obligations to housing providers and residents participating in these programs will continue to be fulfilled.

U.S. District Judge Loren L. AliKhan issued a block on the action Tuesday afternoon, just minutes before it was scheduled to take effect. The administrative stay will pause the freeze until Monday.

Update: January 29, 2025

A Federal District Judge (Loren AliKhan) late in the day Tuesday (Jan. 28th) granted an short-term stay that prevents the planned funding freeze from taking effect until she can hold a hearing on the matter, which is scheduled for 11am Monday (Feb. 3rd), effectively pausing the plan until sometime thereafter.

Update: January 29, 2:29 PM

Today, following a Federal District Court’s decision to grant a short-term stay preventing the planned funding freeze from taking effect until Monday, February 3rd, the Trump Administration rescinded the memo that was proposed to freeze federal grant spending. This action came less than two days after the memo caused widespread confusion. The White House confirmed that the Office of Management and Budget (OMB) withdrew the memo in a brief, two-sentence notice sent to agencies and departments. However, the White House also stated that President Trump’s underlying executive orders targeting federal spending in areas such as Diversity, Equity, and Inclusion (DEI) and climate change remain in effect.

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