Federal Spending Pause Order Rescinded

The White House Office of Management and Budget (OMB) announced on Wednesday, January 29 that it is rescinding the January 27 memorandum directing federal agencies to pause certain grants and loans linked to the President’s executive orders, including funding for foreign aid, DEI initiatives, and climate programs. While the directive excluded federal benefits like Medicare, Social Security, and loans to individuals, it caused confusion within housing and lending industries about which programs were exempt. Subsequent guidance clarified that rental assistance, small business loans, FHA loans, and Project-Based Rental Assistance (PBRAs) were not affected.

The spending pause faced legal challenges, with critics citing constitutional concerns over separation of powers and violations of the Budget Impoundment Control Act of 1974. Earlier on January 28 a federal judge had temporarily blocked the order in response to a lawsuit by state attorneys general. NAR is continuing to work with federal agencies and Congress to track new executive orders and their impact on the real estate industry.