Are Federal Grants And Loans Paused? | What To Do Next

Broad, government-wide pauses are rare; most “pauses” are program-specific, time-limited, and tied to guidance, litigation, or funding lapses.

If you saw headlines or a frantic email thread about federal grants and loans being “paused,” you’re not alone. The tricky part is that “paused” can mean a few different things, depending on who’s talking: an agency awards office, a grant manager, a lender/servicer, or a recipient waiting on a drawdown.

This article helps you figure out what’s paused (if anything), what “pause” means in plain terms, and what to do today if you’re a nonprofit, business, researcher, state/local office, or an individual borrower.

What “Paused” Means For Federal Grants And Loans

People use “paused” as shorthand, but federal money moves through steps. A pause can hit one step without touching the others.

Award, obligation, and payment are not the same thing

Here’s the practical difference:

• Notice of Funding Opportunity (NOFO) stage: an agency can delay posting, extend deadlines, or stop panel reviews for open competitions.
• Award stage: an agency can slow or stop issuing new awards while it reviews rules, priorities, or compliance steps.
• Obligation stage: the agency “sets aside” funds for an award. Some pauses target new obligations.
• Disbursement stage: the recipient draws funds (often through an agency payment system). Some pauses target payouts under existing awards.

“Assistance to individuals” can be treated differently

Not all guidance treats personal benefits the same as organizational grants. One high-profile example: OMB’s January 2025 memo described “Federal financial assistance” and noted it did not include assistance provided directly to individuals, while also stating it should not be construed to impact Medicare or Social Security benefits. If you’re an individual, your first step is to identify the exact program and its administrator, not a headline.

Why People Asked This Question In The First Place

A lot of the modern confusion traces back to an OMB memorandum issued in January 2025, then rescinded two days later. That fast back-and-forth left a long tail of “pause” chatter that still pops up any time agencies change priorities or publish new guidance.

The January 2025 OMB “temporary pause” memo

On January 27, 2025, OMB issued Memorandum M-25-13 titled “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs.” It directed agencies to review assistance programs and, to the extent permissible by law, temporarily pause certain activities tied to obligation or disbursement, plus actions tied to open funding opportunities such as merit review panels. You can read the primary document here: OMB Memorandum M-25-13 (Temporary Pause).

The rescission that followed

On January 29, 2025, OMB issued Memorandum M-25-14, which states that M-25-13 is rescinded. That rescission is short and direct. Here’s the source: OMB Memorandum M-25-14 (Rescission).

So, if someone says “federal grants and loans are paused” as a blanket statement, the best response is: “Which program, which agency, and what step of the process?” A single government-wide switch is not how most assistance works in practice.

Fast Check: How To Tell If Your Funding Is Actually On Hold

You can get clarity in minutes if you run the right checks in the right order.

Step 1: Identify the exact program and the awarding agency

Grab the award number, CFDA/Assistance Listing number (if you have it), and the agency name. If you’re applying and you only have a NOFO, save the full posting link and the deadline.

Step 2: Check the official posting system for updates

For most competitive federal grants to organizations, the public listing and updates route through Grants.gov. Start with the posting and the “related documents” area for any amendments: Grants.gov.

Step 3: Confirm what part is paused

Ask a precise question in one sentence, using your own award language:

• “Are you issuing new awards under this NOFO?”
• “Are existing awards still allowed to draw funds on the normal schedule?”
• “Are reimbursements delayed, or are new obligations delayed?”

Step 4: Look for agency-wide guidance

When a pause is real, agencies usually publish a public notice, a bulletin, or a written update tied to a memo or order. When it’s rumor, the “guidance” is often a forwarded screenshot with no agency header.

If you’re trying to track OMB guidance itself, the White House OMB memoranda page is the clean index: OMB Memoranda Index.

Situation	What “paused” often means	Best place to confirm
Open NOFO for organizations	Deadline moved, review panels delayed, or award dates pushed	NOFO page on Grants.gov
Existing grant with reimbursement draws	Payment queue slowed, extra approval step added, or drawdown window limited	Agency payment system notice + your grant officer email
New awards planned for next quarter	Agency holds new obligations while it issues internal guidance	Agency notice + award office communications
Loan program for organizations	New loan commitments paused, underwriting rules updated, or application intake slowed	Program page on the agency site + official bulletins
Personal benefit program	Eligibility rules change or processing slows, not a blanket stop	Program administrator’s official site
Federal student loans	Repayment, collections, forgiveness processing, or plan rules shift	Federal Student Aid updates + servicer notices
Government shutdown or funding lapse	Some staff furloughed; grants administration slows; some payments continue	Agency shutdown guidance + OMB operations memos
Litigation affecting a rule or program	Agency pauses one action (like a forgiveness track) while courts decide	Agency press releases + court docket summaries from the agency or DOJ

Are Federal Grants And Loans Paused? A Clear Way To Answer It

There is no single answer that fits every agency and every program. Still, you can answer the question cleanly for most real-life cases:

• Across-the-board pause: Not the default state, and it’s hard to sustain legally and operationally across the full assistance universe.
• Program-specific pause: This is the common case. It can hit new awards, new obligations, or payment timing.
• Processing slowdown: A backlog can feel like a pause to recipients, even when funds are still legally available.

If your cash flow depends on federal draws, treat any “pause” claim like you’d treat a weather alert: verify the source, confirm the scope, then act on the parts that are real.

Common Triggers That Create Real Funding Delays

When federal money slows down, it usually comes from one of these patterns.

Trigger 1: New guidance that forces agencies to review programs

OMB and agencies sometimes require reviews to align programs with new orders, new priorities, or new compliance checks. Memos can ask agencies to identify affected programs and to pause certain actions while that review happens. M-25-13 is a clear example of that structure, while M-25-14 shows how quickly a memo can be reversed. You can read both documents in full: M-25-13 and M-25-14.

Trigger 2: Agency staffing constraints and backlog

A grants office can be fully “open” while still running slow. Panel scheduling, legal review, risk reviews, and payment approvals can stack up. That’s not a legal pause, but it can delay awards by weeks and reimbursements by days.

Trigger 3: A funding lapse and partial agency shutdown

During a shutdown, some agency functions stop, and some continue, depending on legal authority and available funding. Agencies often issue guidance for grantees and contractors on what continues and what stops.

Trigger 4: Court orders and legal disputes

If litigation targets a program rule, agencies sometimes halt one action until the legal picture clears. In loan programs, this can show up as delayed processing for certain forgiveness tracks or repayment plan rules, even when billing and standard servicing still run.

Student Loans Vs. Grants: Two Different “Pause” Conversations

Many searches for “grants and loans paused” mix two topics: organizational assistance (grants, cooperative agreements, agency loans) and federal student loans. They behave differently.

Federal student loans: repayment and collections can shift

For borrowers, the most common “pause” stories involve repayment policy, collections timing, or forgiveness processing. The U.S. Department of Education issues press releases when collections policy changes, including delays to involuntary collections actions. You can see an example update here: Department of Education press release on delaying involuntary collections.

Grants and agency loans: your award terms control

If you have an existing award, your grant agreement, payment rules, and agency system notices usually give the best answer. If your award includes a continuation year or option periods, ask if those future actions are being held.

If you are…	What to do in the next 24 hours	What to do in the next 30 days
Nonprofit with reimbursement draws	Confirm drawdown timing with the grant officer; submit any queued invoices	Build a 60–90 day cash forecast; line up bridge options with board approval
University or research office	Check each sponsor notice; freeze non-committed spend on pending awards	Map award actions by date (new awards, continuations, supplements)
Small business chasing a grant/contract mix	Re-check NOFO amendments; document costs tied to proposal work	Stack non-federal leads so your pipeline isn’t one-source dependent
State/local office administering pass-through funds	Ask the federal pass-through contact if subaward timing changes	Draft a notice to subrecipients with clear dates and payment expectations
Individual student loan borrower	Log in to your servicer and confirm status; save a screenshot of your account page	Set a payment plan you can sustain; track official updates from Education
Applicant with an open application	Save the full NOFO PDF and any amendments; capture the deadline text	Plan for a later award date; keep letters of support and budgets current

How To Protect Cash Flow When A Grant Payment Slows Down

Even when a pause is narrow, the pain shows up in payroll and invoices. A few practical moves can keep you steady.

Build a simple “funds-in vs funds-out” map

List each federal award, its next draw date, and the costs you must pay before reimbursement. Then mark which costs are optional for the next 30 days. This takes one hour and makes every later decision easier.

Separate mission spend from timing risk

Some costs have to happen on schedule (staff time, rent, safety items). Some can slide (non-urgent travel, new equipment orders). Put them in two lists so a payment delay does not force chaotic cuts.

Write down your “proof packet” for payments

If a draw gets held for review, you often need the same set of documents: invoices, payroll detail, procurement notes, and performance progress. Keep a folder per award so you can respond fast.

How To Talk With Your Agency Contact Without Getting Vague Answers

You’ll get clearer replies when your question is narrow and tied to a date.

Use a single-sentence question with one decision point

• “Can we submit a drawdown for costs through Friday, and should we expect payment next week?”
• “Are you issuing new awards under this NOFO, or is the award date moving?”
• “Do you need any extra documentation before approving the next reimbursement?”

Ask for the written source

If the answer is “we’re waiting on guidance,” ask which memo or notice controls the wait, and ask where it’s posted. If the answer is real, there’s usually a document trail.

What To Watch In 2026 If You’re Tracking “Pause” Rumors

When a new rumor pops up, these are the signals that matter:

• Official memo with a number and date: OMB memos and agency bulletins carry identifiers and publication dates.
• Agency system banner: payment portals and NOFO listings often post banners for schedule changes.
• Program page update: administrators update their pages when rules or timelines change.

If you want to track the “source of sources” for grants listings, keep Grants.gov bookmarked: Grants.gov home. If you want to track OMB memos by date, use the index: OMB Memoranda Index.

Practical Takeaways You Can Act On Today

If you’re still unsure whether your program is paused, do these three things and you’ll usually get a straight answer.

1. Verify the source: find the memo, bulletin, or posting update on an official site, not a screenshot.
2. Name the step: ask if the pause is about new awards, new obligations, or payment timing.
3. Protect the gap: build a short cash forecast and stage documentation so you can respond fast.

Most funding “pauses” are narrower than the headlines. Once you pin down the program and the step, you can plan like a pro and avoid panic spending cuts.