Update: Right before the federal funding freeze was to go into effect, a federal judge temporarily halted the order. Our current understanding of the ruling is that this is a “brief administrative stay,” and the judge’s order only runs through Monday. Today’s order only applies to "open awards," or funds that were already slated to be disbursed. Funding that has not been awarded will not proceed.
Below is updated information to reflect this latest court ruling.
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As you may have seen in the news in the last 24 hours, the Office of Management & Budget (OMB) under the Trump Administration issued a
memo late yesterday directing each federal agency to “complete a comprehensive analysis of all their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the Presidents’ executive orders.” As they conduct this analysis, OMB has also directed a temporary pause on all federal financial assistance programs that may be impacted by the President’s new executive orders.
This is a rapidly changing situation, but here is what we know so far:
Medicaid
Initially, it was clear that this pause did not impact Medicare or Social Security, but whether it impacted Medicaid was uncertain. OMB issued follow up
guidance today explicitly stating that
“mandatory programs like Medicaid and SNAP will continue without pause.”
Nonetheless, we have heard reports that states are unable to access their Medicaid portals. We are continuing to monitor the situation and hope for a swift resolution, so that providers receive proper, timely reimbursement. We will be working with our state affiliates to understand the impact and extent of any payment delays, so we can escalate this to policymakers.
Other Programs Impacted
OMB also issued a detailed spreadsheet listing the federal programs impacted by this pause. This is an extremely long and detailed list across multiple federal agencies. We are reviewing the list and will highlight any specific areas in which long term and post-acute care may be impacted.
How Long Will This Last?
The pause was slated to go into effect at 5:00pm EST today but was temporarily halted by a federal judge minutes before. The brief administrative stay by the federal judge lasts through Monday, February 3rd, when the Court will hold another hearing to determine next steps.
OMB has also directed federal agencies to submit reports about federal grant programs by February 10th for review. How long the Administration will take to conduct their review and take further action remains uncertain.
In addition to the U.S. District Court case that temporarily blocked the order late today, a group of attorneys general said Tuesday they will seek an injunction blocking the freeze.
We understand this may cause some providers, states, and other stakeholders confusion and uncertainty. We will do everything within our power to encourage clarity, consistency, and continuity, so that members have the resources they need. AHCA/NCAL will keep you apprised as we learn more.