Last Updated January 29, 2025 at 9:40pm ET
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UPDATE: On the afternoon of January 29, it was reported that the White House reversed – also called “rescinded” – the OMB memo that created the federal funding freeze and the resulting confusion described in this resource.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House Press Secretary Karoline Leavitt created more confusion when she clarified that while the memo itself had been rescinded, the funding freeze was still in place.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Despite the halt and the rescinded OMB memo, AAPD has continued to hear from people with disabilities, disability programs, and others facing substantial, disruptive problems with accessing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.
Many organizations may file lawsuits over this in the coming days and weeks. Just before 5 p.m. ET today, January 28, a federal judge temporarily blocked the administration’s actions until February 3. This means that federal funds should continue to flow until then.
What does this freeze mean for disabled people?
On its first day, this freeze has already started harming people with disabilities. Medicaid portals in all 50 states went down today. We may see layoffs at disability organizations that receive federal funding and rely on federal grants to make their payroll. Schools must continue to provide special education services, which will be difficult if they cannot use the federal money that funds these services.
The pause ordered by the White House takes away opportunities from American people. Americans have already paid for these services with our tax dollars, and Congress has already allocated the funding for these programs and services.
Right now, AAPD believes that this freeze impacts two important categories of activity:
- Funding that goes from the federal government to states to fund programs that are important to disabled people
- Funding and grants that fund state and national disability organizations
Programs that are important to disabled people potentially affected by the freeze include, but are not limited to the following programs:
- Medicaid
- Medicaid grants like the Money Follows the Person program
- Special education, including personnel preparation and research
- Vocational rehabilitation
- Housing assistance
- Childcare
- School meals
- Adult protective services
- Veteran’s Administration grants
State and national organizations funded by federal dollars and potentially affected by the freeze include but are not limited to:
- Protection & Advocacy agencies
- Developmental Disability Councils
- University Centers of Excellence in Developmental Disabilities (UCEDDS)
- Centers for Independent Living
- State Independent Living groups
- Resource centers for people with paralysis, limb loss, and traumatic brain injury
- Disability Innovation Fund awards
- Parent Training and Information Centers
- Grants from the Office of Disability Employment Policy
- Special Olympics
- Cooperative agreements through the Centers for Disease Control to organizations working on epilepsy, AIDS, blood disorders, and other chronic conditions
- Payments to universities for research grants and graduate medical education
AAPD does not receive federal funding, so this category does not apply to us. AAPD is not at risk of having our programs or activities halted as a result of this order.
Are there other programs for disabled Americans that might be affected by this?
Yes, there are many government programs and activities that could be affected by the freeze. The lists we provided are not comprehensive.
One example is that do not yet have clarity on whether the Older Americans Act programs are included, which means programs like Meals on Wheels could be affected. Pauses to funding for Housing and Urban Development (HUD) programs, including Section 8 Housing Choice Vouchers, Project-Based Rental Assistance, Section 811 Housing for Persons with Disabilities, Section 202 Housing for the Elderly, and others have already significantly impacted disabled homeowners and renters.
In our community, we like to say that every policy issue is a disability issue. This is because the disability community is made up of every other community in the United States, and there are disabled people in every community. That means that, like the Older Americans Act example, there are many federal programs potentially impacted by the freeze that impact disabled people, but do not explicitly focus on disabled people.
The lists of programs and organizations provided by AAPD conflict with other information I saw. What does that mean?
The lack of clear guidance from OMB and the White House means that there may be a lot of conflicting information for a while. That is why AAPD will update this page frequently.
The White House and OMB have put out conflicting information. We know that the White House stated later when asked, but did not say in its two memos, that Medicare, Social Security, including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), food assistance programs like SNAP and WIC, and Pell Grants are excluded from this order. The White House also said in a Q&A, but does not say in its memos that Medicaid, Head Start, special education, and vocational rehabilitation are excluded.
We cannot be confident about the accuracy of the White House’s list of excluded programs because they are not in either memo. We also have reason to be concerned because many people have reported to AAPD and others that they are experiencing disruptions in programs the White House said were not affected. For example, Head Start programs already reported being denied access to money on January 28, and the Medicaid portals that states use were shut down nationwide. According to officials in many states, the Medicaid system’s website used by state officials cited delays because of “executive orders regarding potentially unallowable grant payments.”
How long will financial assistance be paused?
It is not clear how long this freeze will last. There was no mention of when the freeze might be lifted in the initial memo announcing the freeze, nor in a second memo issued by OMB about projects with funding obligations through March 15. We will update this resource when we have more information.
Some dates are mentioned in the memos that could give us an idea of what the timeline might look like. Agencies have until February 10 to submit information on activities that are subject to the pause. OMB’s second memo asked agencies to submit information on specific projects by February 7 if the projects have funding obligations through March 15. The second memo included a list of projects, and it is not clear if the list of projects in the second memo are the same as the funding lines paused by OMB.
I don’t want these programs and services for disabled people to end. What can I do?
- Encourage your governor and state representatives to contact Congress and the White House
- Reach out to your representatives in Congress and let them know you are their constituent and want them to tell the White House that this freeze is unacceptable
- Raise awareness and share your stories!
- Attend town halls with local elected officials and community members directly impacted by the funding freeze.
- Go live on social media and/or record and share a short video clip across your platforms to explain what is happening and how it will affect the people you represent.
- Share local stories with local media to show the impacts of the pause.
AAPD will share more information as soon as we have it, as well as ways to engage your elected officials to let them know how this freeze will impact you and our community.