Please note this article has been updated with the latest developments. See more here.

As Feldesman monitors the Trump Administration’s actions, a significant concern is the “pause” on grant announcements by the U.S. Department of Health and Human Services (HHS). This pause, which could impact notices of funding opportunities, new grant awards or both, coincides with language in an Executive Order targeting grant programs that have been exempt from status check for over 25 years, including health centers and Head Start. Section 19 of the Executive Order states:

“Sec. 19. Funding Review. The Attorney General and the Secretary of Homeland Security shall:

(a) Immediately review and, if appropriate, audit all contracts, grants, or other agreements providing Federal funding to non-governmental organizations supporting or providing services, either directly or indirectly, to removable or illegal aliens, to ensure that such agreements conform to applicable law and are free of waste, fraud, and abuse, and that they do not promote or facilitate violations of our immigration laws;

(b) Pause distribution of all further funds pursuant to such agreements pending the results of the review in subsection (a) of this section;

(c) Terminate all such agreements determined to be in violation of law or to be sources of waste, fraud, or abuse and prohibit any such future agreements;

(d) Coordinate with the Director of the Office of Management and Budget to ensure that no funding for agreements described in subsection (c) of this section is included in any appropriations request for the Department of Justice or the Department of Homeland Security; and

(e) Initiate clawback or recoupment procedures, if appropriate, for any agreements described in subsection (c) of this section.”

The intent of this provision and the pause in issuing grant “announcements” at HHS are not clear. Feldesman attorneys will continue to monitor the actions of the new Administration. We encourage you to share whether an expected Notice of Funding Opportunity has been posted or, more critically, if an anticipated Notice of Grant Award has not been issued.

For questions regarding your organization’s federal grant and ongoing developments with HHS grant awards, please contact Feldesman Managing Partner Ted Waters (ewaters@feldesman.com) or Partner Scott S. Sheffler (ssheffler@feldesman.com) or call 202.466.8960.