Improving and empowering state tax administration
Improving and empowering state tax administration
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OMB Rescinds Federal Funding Pause 

A Jan. 29, 2025 United States Office of Management and Budget (OMB) memorandum rescinded the office’s Jan. 27 memorandum that required heads of federal departments and agencies to temporarily pause their grant, loan, and other financial assistance programs.

The initial OMB memo stated that during the pause federal agencies would be required to identify and review by Feb. 10 all federal financial assistance programs and supporting activities consistent with the president’s policies and requirements.  A recent New York Times article listed all programs that would have faced review under the initial order. 

Many of the programs that would have been included in this review fall under the Treasury Department and other agencies with ties to tax administration and sources of revenue relied upon by the states, making this of significant interest to state and local tax administrators.

FTA staff will continue to research and work with its partners to determine the scope and impact these actions would have on state and local tax administrators. FTA will keep members apprised as any developments occur and deliver guidance and resources as needed to help navigate issues.

If you have questions or pertinent information to share, contact us.

Last updated January 29, 2025

screen capture - memorandum for heads of executive departments and agencies