On January 27, 2025, the Office of Management and Budget (OMB) issued Memorandum M-25-13, outlining a temporary pause on Federal financial assistance programs, including grants, loans, and other financial support. This move has significant implications for organizations seeking Federal funding. Here’s what this memorandum means and how E.B. Howard Consulting is prepared to help you navigate this evolving situation. See the Memorandum here https://www.washingtonpost.com/documents/deb7af80-48b6-4b8a-8bfa-3d84fd7c3ec8.pdf
Understanding the Memorandum
The memo mandates Federal agencies to:
- Pause Financial Activities: Federal agencies must halt new awards, disbursements under open awards, and related activities starting January 28, 2025, at 5:00 PM. This includes activities such as merit review panels and issuing new Notices of Funding Opportunities (NOFOs).
- Comprehensive Review: Agencies must conduct a detailed review of financial assistance programs to ensure alignment with the Administration’s priorities.
- Agency Reporting Requirements: By February 10, 2025, agencies must report to OMB on programs and activities impacted by this pause.
- Oversight and Compliance: Agencies must assign oversight responsibilities to senior political appointees and evaluate pending or awarded programs against current priorities.
Impacts on Grant Seekers
For organizations relying on Federal grants or loans, this pause introduces uncertainty. Some immediate challenges include:
- Delayed Funding: Anticipated funds may be temporarily unavailable, impacting project timelines.
- Withdrawn Opportunities: NOFOs may be retracted, requiring organizations to pivot their strategies.
- Increased Scrutiny: Future awards will likely face heightened alignment checks with Administration priorities.
What You Can Do
Navigating these changes requires a proactive and strategic approach. Here are actionable steps to ensure your organization remains competitive:
1. Proposal Reassessment
- Align with Priorities: Review your current grant proposals to ensure alignment with Federal guidelines. Emphasize metrics like innovation, job creation, and scientific impact. Evaluate and potentially revise any elements that no longer align with shifting Federal goals, such as DEI initiatives.
- Verify Deadlines: Double-check proposal deadlines, as they may change due to the pause.
- Update Alerts: Sign up for agency or sponsor alerts to stay informed about revisions to funding announcements or NOFOs.
2. Review Team Composition
- Assess your project team’s qualifications, ensuring they clearly demonstrate the expertise required for the proposed work. Highlight credentials and track records that bolster merit-based evaluation.
- Ensure your staff is well-informed about these changes to align their approach with updated priorities.
3. Refine Evaluation Plans
- Accountability for Outcomes: Refine your proposal’s evaluation methodology to include clear success metrics that demonstrate project impact and scalability. (We’re ahead of you here and ready to help!)
- Prepare Documentation: Keep detailed records of proposal modifications or changes in research methodology to ensure compliance and provide future references.
4. Focus on Innovation and Impact Metrics
- Quantify Impact: Highlight metrics such as job creation, economic development, and scientific breakthroughs to strengthen your case for funding.
- Prepare for Scrutiny: Anticipate audits of budgets, methodologies, and outcomes, and strengthen internal processes for transparency.
5. Engage with Program Officers
- Maintain open lines of communication with program officers. Their guidance can provide clarity on how these changes affect specific funding opportunities and offer insights on proposal adjustments.
6. Stay Informed
- The policy landscape is evolving rapidly. Regularly consult official communications and reputable news sources to stay ahead of further changes impacting grant processes.
7. Develop a Contingency Plan
- Identify Alternatives: Prepare a “Plan B” for funding, including alternative grant opportunities or scaled-down project scopes.
- Monitor Related Changes: Policies affecting federal agencies may signal similar shifts in other government agencies at the state and local levels. Stay vigilant about broader funding changes.
Breathe. We’ve Got You.
- Uncertain times can feel overwhelming, but you don’t have to navigate this alone. Schedule a call with us to strategize your next steps and explore funding alternatives.
Ready To Take the Next Step?
We assist our clients in locating, applying for, and evaluating the outcomes of non-dilutive grant funding. We believe non-dilutive funding is a crucial tool for mitigating investment risks, and we are dedicated to guiding our clients through the entire process—from identifying the most suitable opportunities to submitting and managing grant applications.