On January 27, 2025, the Office of Management and Budget (OMB), an office of the Executive Office of the President of the United States, ordered a pause to the disbursement of federal grants and loans, to take effect the following day. Acting director Matthew Vaeth characterized the order as necessary to prevent funding for diversity, equity, and inclusion (DEI) programs and woke ideals. Although the exact extent was initially unclear, the memo exempted federal assistance to individuals from the pause, including programs such as Social Security and Medicare. Despite this, reimbursements for programs such as Medicaid and Head Start were inaccessible to many on the 28th. The OMB released a second memo clarifying the order, stating that it was necessary to implement President Donald Trump's recent executive orders.
The pause was stayed on January 28 by district court judge Loren AliKhan, prior to its 5 P.M. EST deadline. The following day, the OMB retracted the initial memo, but White House press secretary Karoline Leavitt stated that efforts to freeze federal funding would continue anyway. On January 31, a second federal district judge, John J. McConnell Jr., held that there was a likelihood that the funding freeze violated the United States Constitution and U.S. law and issued a temporary order blocking its implementation in 22 states and the District of Columbia.