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Froze federal grants without Congressional authorization

January 27, 2025

3
Level

Multiple Guardrails

Founders' Principles Violated

M
Madison

Checks & balances bypassed. Executive action without Congressional authority.
H
Hamilton

Executive power exceeded constitutional limits.
W
Washington

Personal ambition overriding institutional stability.

Guardrails Violated

Congressional Authority

Congressional authority and oversight bypassed.
Impoundment Control Act

Impoundment Control Act limits on withholding appropriated funds violated.
Power of the Purse

Congressional power of the purse and appropriations authority bypassed.
Separation of Powers

Separation of powers and constitutional balance between branches violated.

Trigger

OMB issued memo (M-25-13) directing freeze of federal grant payments, particularly targeting programs related to diversity, equity, and inclusion (DEI), without Congressional authorization.

Action Taken

Office of Management and Budget (OMB) issued memo M-25-13 on January 27, 2025 directing all federal departments and agencies to temporarily halt all activities related to awarding or disbursing federal financial assistance (grants, loans, etc.), except where legally or operationally impossible. The freeze was scheduled to take effect on January 28, 2025 at 5:00 PM EST. Multiple states and organizations filed lawsuits. Federal judge Loren AliKhan issued a preliminary injunction on January 28, 2025 blocking the freeze before it took effect, ruling it violated Congressional appropriations authority.

In His Own Words

"We need to review all grant programs for efficiency and alignment with administration priorities."

"Certain grant programs are under review pending further evaluation."

What's Wrong

Bypassed Congressional appropriations authority by freezing funds that Congress had already appropriated. Violated Impoundment Control Act of 1974 which limits executive power to withhold congressionally appropriated funds. Courts ruled the freeze illegal and unconstitutional.

Impact

Institutional: Sets precedent for executive withholding of congressionally appropriated funds. Legal: Multiple federal courts ruled freeze illegal and unconstitutional. Economic: Affected programs and organizations dependent on federal grants. Operational: Created uncertainty and disruption in grant-funded operations.

Sources & Full Details

Primary Sources

Background

The Impoundment Control Act of 1974 limits the president's power to withhold congressionally appropriated funds. Multiple states and organizations filed lawsuits challenging the grant freeze. Federal courts issued preliminary injunctions, ruling the freeze violated Congressional appropriations authority and was unconstitutional.

Why Level 3?

Multiple guardrails bypassed: Congressional appropriations authority, Impoundment Control Act, separation of powers. Measurable harm to Congressional authority and grant-funded programs. Courts ruled action illegal.