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Federal Government Transition Update - 2.3.25

Dear Colleagues,

Today, the Trump administration issued new guidance to federal agencies clarifying how it intends to comply with a temporary restraining order (TRO) imposed by the U.S. District Court for the District of Rhode Island on January 31. The guidance clarifies that federal agencies cannot “pause, freeze, impede, block, cancel or terminate” any federal grants on the basis of the now-rescinded OMB memo from January 27 or any recent Executive Orders. This includes stop work orders issued to institutions as well as individual PIs on specific grants. Based on this ruling and the accompanying guidance, we ask that all researchers, faculty, and staff continue working on their grants as normal. Moreover, the administration’s guidance says federal agencies must release funds for all grants, not just grants in the 22 states, including Colorado, who filed the lawsuit. More directly from the administration here:

1. Federal agencies cannot pause, freeze, impede, block, cancel, or terminate any awards or obligations on the basis of the OMB Memo, or on the basis of the President’s recently issued Executive Orders.

2. This prohibition … also applies to future assistance (not just current or existing awards or obligations).

3. Agencies may exercise their own authority to pause awards or obligations, provided agencies do so purely based on their own discretion—not as a result of the OMB Memo or the President’s Executive Orders—and provided the pause complies with all notice and procedural requirements in the award, agreement, or other instrument relating to such a pause…. (e.g.) agencies remain free to exercise their own discretion under their “authorizing statutes, regulations, and terms,” including any exercise of discretion to pause certain funding. Additionally, agencies remain free to take action pursuant to the terms of the relevant award or obligation, such as in cases of grantee noncompliance.

The TRO will remain in place until the court takes further action, which is currently anticipated to be sometime mid-February, though it could be extended. There is another similar case pending in the U.S. District Court for the District of Columbia, which today issued another restraining order on the administration’s freeze of federal funding. We will continue to update you as either court takes further action.

These issues are rapidly evolving, and we recognize the uncertainty and worry our campus communities are experiencing. We are here for you, and we are actively working with the President, Chancellors and our legal team.  We encourage you to contact your campus leadership with questions and to discuss impacts on your projects, programs, and departments. The Office of University Counsel and the Office of Federal Relations will continue to analyze the potential impact of these actions on the university’s mission and the people who work and learn on our campuses. Please visit the CU System Federal Transitions Update page for up-to-date communications and federal memos. 

Jeremy Hueth, Vice President, University Counsel 
Danielle Radovich Piper, Sr. VP External Relations and Strategy   

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