NAHB Seeks Clarification on Administration’s Temporary Pause for Federal Funds

Note: The day after this post originally published on Jan. 28, the White House rescinded the memo that called for a temporary freeze on many federal grants and loans. Read more here.

The White House Office of Management and Budget (OMB) has ordered a temporary pause on many federal grants, loans or financial assistance programs effective on Tuesday, Jan. 28 at 5 p.m. ET. However, a federal judge has halted the White House Freeze on federal aid programs until at least Feb. 3.

The OMB memorandum says this temporary pause “requires federal agencies to identify and review all federal financial assistance programs and supporting activities consistent with the president’s policies and requirements.”

NAHB staff is working to clarify the OMB statement to determine what effect it will have on federal housing programs by reaching out to several federal agencies and the White House. We’ve received assurances from the White House and agencies that housing programs are not the intended target of the pause.

Meanwhile, the U.S. Department of Housing and Urban Development has confirmed with the OMB that all Federal Housing Administration Single Family Title I and Title II mortgage insurance programs remain operational and are not subject to the pause in federal grants and loans outlined in OMB’s memo to federal agencies today.

Federal agencies are required to report to OMB by Feb. 10 detailed information on any programs, projects or activities subject to this pause. The administration has indicated it will offer some exceptions to this order.

In a two-page Q&A issued by the OMB to clarify its order, the agency states that “funds for small businesses, farmers, Pell grants, Head Start, rental assistance, and other similar programs will not be paused.”

NAHB will continue to engage with the administration as it reviews federal aid programs and work with officials to minimize any possible effects on the housing community.