Explaining the Impact of the Federal Funding Pause on People with Disabilities

This originally appeared on the AAPD website

by: Jess Davidson

Note: This resource is based on a rapidly evolving situation and will be updated as we receive more information.

UPDATE: On the afternoon of January 29, it was reported that the White House reversed – also called “rescinded” – the OMB memo that created the federal funding freeze and the resulting confusion described in this resource. This news was celebrated as a success, won thanks to advocate pressure, public outcry, and legal challenges. However, soon after this welcome news, White House Press Secretary Karoline Leavitt created more confusion when she clarified that while the memo itself had been rescinded, the funding freeze was still in place. The reasoning provided was to address confusion about the halt ordered by a judge on January 28.

The halt ordered by a federal judge is still in effect until February 3. In court, the judge will give the Department of Justice and nonprofit organizations who will be negatively affected by the pause the opportunity to share how the pause will affect them and advocate for their wishes.

Despite the halt and the rescinded OMB memo, AAPD has continued to hear from people with disabilities, disability programs, and others facing substantial, disruptive problems with accessing funds from government grants, loans, and programs. Even though the White House did not truly reverse the policy decision of the funding freeze, their decision to rescind the memo shows that when people are united and upset about a harmful policy decision, our power and influence can create the pressure necessary for change.

What is the federal funding pause? 

On January 27, 2025, the White House Office of Management and Budget (OMB) issued a memo that directed all federal agencies to pause spending on all grants, loans, and other federal financial assistance. The White House said that they are doing this because they want to review agency programs and determine if they fit with President Trump’s priorities. Engaging in a widespread freeze like this is not a common practice when new presidential administrations are determining their priorities.

OMB’s memo used very broad language, which led many agencies and programs to determine they should participate in the pause until they receive further instructions and information. All open federal funding opportunities and application processes will also be canceled.

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