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<p class="MsoNormal"><span style="font-size:11.0pt">WSSSC,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Per our business operations-<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black;mso-ligatures:standardcontextual">As many of you have already heard, a
</span><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;mso-ligatures:standardcontextual">memorandum (M-25-13)
<span style="color:black"> was released last night by the federal Office of Management and Budget advising
</span>federal agencies to temporarily pause disbursement of federal financial assistance<span style="color:black">. We wanted to alert you that we are working on multiple fronts to clarify the programs that are and are not affected by the federal pause order.
At this time there are more questions than answers, but we will send any additional information as we get it throughout the day. As of now, SBCTC’s business office will continue processing invoices submitted as per our standard processes.<o:p></o:p></span></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Below and attached was sent out to presidents last night.<o:p></o:p></span></p>
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Traugott<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-line-height-alt:10.55pt;text-autospace:none"><span style="font-family:"Franklin Gothic Medium",sans-serif;color:#003764;mso-ligatures:standardcontextual">Director of Student Services and K12 Alignment</span><span style="font-family:"Franklin Gothic Medium",sans-serif;mso-ligatures:standardcontextual"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-line-height-alt:10.55pt;text-autospace:none"><span style="font-size:11.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#003764;mso-ligatures:standardcontextual">Washington State Board for Community and Technical Colleges<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-line-height-alt:10.55pt;text-autospace:none"><span style="font-size:11.0pt;mso-ligatures:standardcontextual"><a href="mailto:jtraugott@sbctc.edu">jtraugott@sbctc.edu</a></span><span style="font-size:11.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#003561;mso-ligatures:standardcontextual">
</span><span style="font-size:11.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#003764;mso-ligatures:standardcontextual">• o: 360-704-3929
</span><span style="font-size:11.0pt;font-family:"Franklin Gothic Book",sans-serif;mso-ligatures:standardcontextual"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Franklin Gothic Book",sans-serif;mso-ligatures:standardcontextual"><a href="https://www.sbctc.edu/">sbctc.edu</a><span style="color:#003561">
</span><span style="color:#003764">• Facebook: </span><a href="https://www.facebook.com/wasbctc/">@WASBCTC</a>
<span style="color:#003764">•</span></span><span style="font-size:11.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#003764;mso-ligatures:standardcontextual"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#003764;mso-ligatures:standardcontextual">LinkedIn:
</span><span style="font-size:11.0pt;font-family:"Franklin Gothic Book",sans-serif;mso-ligatures:standardcontextual"><a href="https://www.linkedin.com/company/washington-state-board-for-community-and-technical-colleges">@washington-state-board-for-community-and-technical-colleges</a><span style="color:#003764"><o:p></o:p></span></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> Choi Halladay <challaday@sbctc.edu>
<br>
<b>Sent:</b> Tuesday, January 28, 2025 9:04 AM<br>
<b>Subject:</b> To All SBCTC Staff regarding Federal Grant Pause<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Message sent to Presidents ---------------------------<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Late on January 27, 2025 the Office of Management and Budget Director, Matthew Vaeth, sent a memo to all heads of federal departments and agencies. The memo is attached.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">The primary purpose of the memo was to order all agencies to “identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and
requirements.”<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">The memo goes on to order agencies to “pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated
by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Finally, the memo states that agencies must do a comprehensive analysis by February 10, 2025 of all paused programs and submit information to OMB. However, the wording of the memo does not state,
as many news agencies have reported, that the programs will resume on February 10. This date is simply a deadline for agencies to submit analyses to the OMB, and there are no other timelines presented for the resumption of grant and loan activities.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">For further detail, the memo defines “financial assistance programs” via the following definition:<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">2 CFR 200.1 defines Federal financial assistance to mean “[a]ssistance that recipients or subrecipients receive or administer” in various forms, but this term does not include assistance provided
directly to individuals. For the purposes of this memorandum, Federal financial assistance includes: (i) all forms of assistance listed in paragraphs (1) and (2) of the definition of this term at 2 CFR 200.1; and (ii) assistance received or administered by
recipients or subrecipients of any type except for assistance received directly by individuals.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">In turn, 2 CFR 200.1 has the following definitions:<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">Federal financial assistance means:<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">(1) Assistance that recipients or subrecipients receive or administer in the form of:<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> (i) Grants;<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> (ii) Cooperative agreements;<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> (iii) Non-cash contributions or donations of property (including donated surplus property);<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> (iv) Direct appropriations;<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> (v) Food commodities; and<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> (vi) Other financial assistance (except assistance listed in paragraph (2) of this definition).<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">(2) For § 200.203 and subpart F of this part, Federal financial assistance also includes assistance that recipients or subrecipients receive or administer in the form of:<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> (i) Loans;<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> (ii) Loan Guarantees;<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> (iii) Interest subsidies; and<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> (iv) Insurance.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"> Initial conversation about the scope of this order is unclear at this time. Because of the sweeping yet imprecise nature of the phrase “except for assistance received directly by individuals”
in the scope of the pause, it seems logical to conclude that things like Pell Grants and GSLs would be exempted. However, because the programs themselves are administered by colleges that are already being redefined as “subcontractors,” even that is not clear.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">It is clearer that programs like TRIO and Title III, where the funding goes to a college administration without a direct student financial disbursement will be part of the pause and analysis.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black">More information will be shared on a regular basis as it becomes available. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></p>
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<p><img border="0" width="60" height="111" style="width:.625in;height:1.1562in" id="Picture_x0020_1" src="cid:3098ce78-11f2-4d92-8f04-990a7fe0136e" alt="Compass"><o:p></o:p></p>
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<p><span style="font-size:14.0pt;font-family:"Franklin Gothic Medium",sans-serif;color:#003764">Choi Halladay</span><o:p></o:p></p>
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<p style="line-height:10.55pt"><span style="font-size:10.0pt;font-family:"Franklin Gothic Medium",sans-serif;color:#003764">Deputy Executive Director, Business Operations</span><o:p></o:p></p>
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<p style="line-height:10.55pt"><span style="font-size:10.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#003764">Washington State Board for Community and Technical Colleges</span><o:p></o:p></p>
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<p style="line-height:10.55pt"><span style="font-size:10.0pt;font-family:"Franklin Gothic Book",sans-serif;color:#003764"><a href="mailto:challaday@sbctc.edu">challaday@sbctc.edu</a> • o: 360-704-4303</span><o:p></o:p></p>
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