Judge Temporarily Blocks Federal Funding Pause
Late afternoon January 28, shortly before a directive from the White House’s Office of Management and Budget to pause a wide array of federal funding was to go into effect at 5PM, a federal judge blocked the pause until February 3, at which point the judge will make a more permanent decision. The temporary funding pause, which had no end date, would have impacted federal financial assistance, grants, and loans (but not Social Security or Medicare), while administration officials assessed the programs against their own goals. The memo brought widespread chaos and concern to federal funding recipients, including aging services providers.
After an email from LeadingAge president and CEO Katie Smith Sloan alerted members to the memo and our ongoing assessment of it, LeadingAge issued an action alert urging House and Senate members to ask President Trump to immediately end the funding pause. By mid-day January 28, OMB shared some additional information, including that Medicaid and rental assistance would not be impacted. However, LeadingAge had reports all day that states were unable to access their Medicaid payment portals despite OMB saying the program would not be impacted by the rule. Aging services stakeholders are urged to respond to the action alert to educate congress on the confusion and threats posed by any freeze of federal funding.
LeadingAge articles on the funding freeze:
These articles are in one “serial post” on the topic, here: OMB Memo: Temporary Pause on Federal Financial Assistance Programs. This serial post will be updated as new information becomes available.
Tax Policies Under Consideration in the House Raise Concerns for Nonprofits
Options under consideration in the U.S. House of Representatives for achieving federal budgetary goals and priorities includes revenue-raising tax policy changes that would create threats for nonprofit organizations. Specifically, a list compiled by the House Budget Committee includes potential policy changes related to bond financing, organizational tax exemption, and charitable giving to healthcare organizations. See this LeadingAge article for detail.
Administrative Law Judge Pauses Proceedings Relating to Marijuana Rescheduling
The hearing that was set to begin January 21, in the matter of the Drug Enforcement Administration’s (DEA) proposed transfer of marijuana from Schedule I to Schedule III of the Controlled Substances Act, is not moving ahead as planned. In a January 13 order, presiding Administrative Law Judge John Mulrooney canceled the hearing and has temporarily paused the proceedings altogether.
The background is that certain pro-rescheduling organizations had requested that Judge Mulrooney remove now-former DEA Administrator Anne Milgram from her role as the proponent of the proposed rescheduling rule during the hearings, alleging in part that DEA had engaged in improper communications with a rescheduling opponent and also questioning the agency’s rationale for selecting certain witnesses to participate in the hearing while excluding others. In short, these organizations appear to believe former Administrator Milgram did not support the proposed rule and so should have been excluded, presumably to be replaced by a representative from the broader Department of Justice (DOJ). Mulrooney denied their motion and a subsequent motion for him to reconsider, stating among other things that he does not have authority to do what they asked. However, he granted the moving parties’ request to appeal his decision back to the DEA itself.
The Judge’s cancelation of the hearing followed, and proceedings appear to be paused for at least three months. The ball is back in the DEA’s court, but with President Trump having taken office and having identified his choices for Attorney General and a new DEA Administrator, what happens next is uncertain. LeadingAge will continue to follow this story.
Weekly Recaps: January 29, 2025
Affordable Housing Weekly Recap. Here is your weekly Affordable Housing Weekly Recap.
Home Health Weekly Recap. Here is your weekly Home Health Weekly Recap.
Hospice Weekly Recap. Here is your weekly Hospice Weekly Recap.
Life Plan Community Weekly Recap. Here is your weekly LPC Weekly Recap.
Medicaid, HCBS, and PACE Weekly Recap. Here is your weekly Medicaid, HCBS, and PACE Weekly Recap.
Nursing Home Weekly Recap. Here is your weekly Nursing Home Weekly Recap.
Workforce Weekly Recap. Here is your weekly Workforce Weekly Recap.
