Introduction

In the two weeks since the new administration assumed office on January 20, 2025, the administration has enacted significant changes affecting federal grants and foreign aid. These actions have led to widespread confusion, legal challenges, and disruptions both domestically and internationally.

At this time, due to these events, we at Intention Labs LLC can no longer offer grant writing for startups or businesses seeking aid. Below is a timeline of the events over the last two weeks. As these events unfold, we will update this page as necessary.

January 20, 2025 Inauguration Day

The New Administration took office.

January 21, 2025 Executive Order 14169

On his first full day in office, President Trump signs Executive Order 14169, titled "Reevaluating and Realigning United States Foreign Aid." This order mandates a 90-day suspension of all U.S. foreign development assistance programs to conduct a comprehensive review. Exceptions are made for emergency food assistance and military aid to Egypt and Israel. The order states:

"It is the policy of my Administration to ensure that all foreign aid aligns with the national interests of the United States."

January 24, 2025 State Department Action

Following the executive order, the U.S. State Department suspends all existing foreign aid programs, with the noted exceptions. New aid initiatives are also put on hold. This suspension affects over $60 billion in aid distributed through the U.S. Agency for International Development (USAID), impacting programs such as vaccine rollouts, mine clearing, anti-human trafficking efforts, and basic healthcare funding.

January 27, 2025 OMB Memo M-25-13

Matthew J. Vaeth, Acting Director of the Office of Management and Budget (OMB), issues memo M-25-13. The memo orders federal agencies to "temporarily pause all activities related to obligation or disbursement of all federal financial assistance" to ensure alignment with the President's policies. The memo criticizes the use of resources to advance "Marxist equity, transgenderism, and [Green New Deal] social engineering policies."

January 28, 2025 Legal Challenges and Clarifications

Nonprofit organizations report difficulties accessing promised funds due to the freeze. In response, the OMB issues a Q&A clarifying that the pause applies only to programs implicated by the President's executive orders. Programs not affected by these orders are not subject to the pause.

Later that day, U.S. District Judge Loren AliKhan issues a temporary restraining order, halting any remaining aspects of the funding freeze. The judge states that the freeze could have catastrophic effects on organizations assisting vulnerable Americans.

January 29, 2025 OMB Rescinds Memo

The OMB withdraws memo M-25-13. However, White House Press Secretary Karoline Leavitt clarifies that the withdrawal does not nullify the funding freeze, indicating that the administration's review of federal financial assistance programs continues.

January 31, 2025 MESSAGE to the NSF PI Community

“On Friday, January 31, 2025, a Federal Court issued a Temporary Restraining Order (TRO) directing Federal grant-making agencies, including the National Science Foundation (NSF), to “...not pause, freeze, impede, block, cancel, or terminate... awards and obligations to provide federal financial assistance to the States, and... not impede the States’ access to such awards and obligations, except on the basis of the applicable authorizing statutes, regulations, and terms.” Although the language of the TRO is directed at State institutions, the Department of Justice has determined that it applies to all NSF award recipients. In order to comply with the TRO, the NSF Award Cash Management Service (ACM$) system is available for awardees to request payments as of 12:00pm EST, February 2, 2025. Please check back regularly as we add frequently asked questions (FAQs) based on community feedback.” Sethuraman Panchanathan Director, National Science Foundation

This message is also available on the Executive Order Implementation webpage You can review the TRO here

February 1, 2025: Further Legal Developments

After 22 states and the District of Columbia file lawsuits, District Judge John J. McConnell Jr. orders the Trump administration to temporarily halt the federal funding freeze in those states. The judge asserts that "no federal law would authorize the executive's unilateral action here."

Impact and Reactions

The sudden suspension of aid has immediate consequences. Clinics funded by the President's Emergency Plan for AIDS Relief (PEPFAR) cancel appointments and turn away patients. Two-thirds of the staff of the President's Malaria Initiative are laid off. Humanitarian programs in Gaza, Sudan, and Syria providing essential services like clean water and cholera treatment come to a halt. Distribution of critical medical supplies in Zambia is disrupted. A hospital in the Mae La refugee camp on the Thailand-Myanmar border sends 60 patients home without treatment.

USAID Employees Left Stranded and Unprotected

Perhaps one of the most devastating effects of the aid freeze is the impact on USAID employees, particularly those stationed in war-torn and disaster-stricken countries. With funding frozen, many USAID field workers have been left in perilous situations without security, salaries, or the ability to return home. These employees, who have dedicated their careers to aiding vulnerable populations, now find themselves abandoned, unable to access essential resources or evacuate from increasingly unstable regions.

As one anonymous USAID officer in Sudan states

"We are left completely naked in a country on the verge of collapse. Our security contracts are void, our housing stipends are frozen, and we have no way to leave without personal funds—many of us are trapped."

The freeze has also left thousands of local staff—who are essential to USAID operations—in limbo. These individuals, who help implement programs on the ground, now face unemployment and an uncertain future as critical projects grind to a halt.

Domestic Disruptions in Research and Aid Programs

Domestically, the freeze disrupts federal medical research. A temporary halt on federal grants and loans brings academic research to a standstill, causing uncertainty about funding for graduate students, continuity of clinical trials, and potential loss of critical research data. The National Institutes of Health (NIH) and the National Science Foundation (NSF) pause grant reviews, further exacerbating the situation.

As of February 3, 2025, legal battles continue, and the future of federal grants and aid remains uncertain. Organizations and agencies dependent on federal funding are advised to monitor official communications and legal developments closely.

Sources

1. Executive Order 14169 Reevaluating and Realigning United States Foreign Aid This executive order, signed on January 20, 2025, mandates a 90-day suspension of U.S. foreign development assistance programs to conduct a comprehensive review. Exceptions are made for emergency food assistance and military aid to Egypt and Israel. Source: Federal Register
2. OMB Memo M-25-13 Issued on January 27, 2025, by Acting Director Matthew J. Vaeth, this memorandum directs federal agencies to temporarily pause all activities related to the obligation or disbursement of federal financial assistance to ensure alignment with the President's policies. Source: Arizona State University Research Administration
3. OMB Q&A Regarding Memorandum M-25-13 On January 28, 2025, the Office of Management and Budget released a Q&A to clarify that the pause applies only to programs implicated by the President's executive orders. Programs not affected by these orders are not subject to the pause. Source: The White House
4. Legal Challenges to Funding Freeze Following the funding freeze, legal challenges emerged, leading to temporary restraining orders and further legal developments. Source: Politico
5. Rescission of OMB Memo M-25-13 On January 29, 2025, the Office of Management and Budget rescinded Memo M-25-13. However, the funding freeze remained in effect pending further review. Source: FedScoop
6. Impact on USAID Employees The funding freeze has left many USAID employees stranded in war-torn and disaster-stricken countries without security, salaries, or the means to return home. Source: Reuters
7. Domestic Disruptions in Research and Aid Programs The pause on federal financial assistance has disrupted domestic programs, including federal medical research and academic projects. Source: JD Supra