[WSSSC] [SPAM] Federal Grant Pause

Tue Jan 28 10:08:59 PST 2025

WSSSC,

Per our business operations-
As many of you have already heard, a memorandum (M-25-13)  was released last night by the federal Office of Management and Budget advising federal agencies to temporarily pause disbursement of federal financial assistance.  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.

Below and attached was sent out to presidents last night.

[cid:image002.jpg at 01DB716C.A3B70990]Jamie Traugott
Director of Student Services and K12 Alignment
Washington State Board for Community and Technical Colleges
jtraugott at sbctc.edu<mailto:jtraugott at sbctc.edu> • o: 360-704-3929
sbctc.edu<https://www.sbctc.edu/> • Facebook: @WASBCTC<https://www.facebook.com/wasbctc/> •
LinkedIn: @washington-state-board-for-community-and-technical-colleges<https://www.linkedin.com/company/washington-state-board-for-community-and-technical-colleges>

From: Choi Halladay <challaday at sbctc.edu>
Sent: Tuesday, January 28, 2025 9:04 AM
Subject: To All SBCTC Staff regarding Federal Grant Pause

Message sent to Presidents ---------------------------

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.

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.”

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.”

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.

For further detail, the memo defines “financial assistance programs” via the following definition:

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.

In turn, 2 CFR 200.1 has the following definitions:

Federal financial assistance means:

(1) Assistance that recipients or subrecipients receive or administer in the form of:
      (i) Grants;
      (ii) Cooperative agreements;
      (iii) Non-cash contributions or donations of property (including donated surplus property);
      (iv) Direct appropriations;
      (v) Food commodities; and
      (vi) Other financial assistance (except assistance listed in paragraph (2) of this definition).

(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:
      (i) Loans;
      (ii) Loan Guarantees;
      (iii) Interest subsidies; and
      (iv) Insurance.

 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.

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.

More information will be shared on a regular basis as it becomes available.

[Compass]

Choi Halladay

Deputy Executive Director, Business Operations

Washington State Board for Community and Technical Colleges

challaday at sbctc.edu<mailto:challaday at sbctc.edu> • o: 360-704-4303

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