WASHINGTON — The Federal Emergency Management Agency (FEMA) has temporarily paused grant payments and obligations to conduct additional reviews, according to an email sent to grant recipients. The review process is intended to ensure that funding aligns with directives from Department of Homeland Security Secretary Kristi Noem and complies with federal regulations outlined in 2 C.F.R. Part 200.
The FEMA email stated that, effective immediately, all grant allocations will undergo additional scrutiny by FEMA and DHS before funds are released. FEMA has requested that recipients provide the following information when submitting new payment requests:
- Will this disbursement go to any subrecipients, and if so, which ones?
- What is the total amount of funds going to each subrecipient?
- What activities will be funded by this disbursement?
- What is the time period covered by this payment request?
According to FEMA, payment requests may take up to 30 days to process, with potential extensions if additional information is required. FEMA will reach out to agencies with existing requests if further clarification is needed.
The timing of FEMA’s decision coincides with a broader legal battle over federal funding. A federal judge in Washington, D.C., issued a preliminary injunction on Feb. 25 blocking the Trump administration from implementing a sweeping freeze on federal grants and loans. The ruling came after advocacy groups argued that the funding pause would cause significant economic harm to nonprofits and small businesses, the Associated Press reported. The judge noted that such a freeze could have “economically catastrophic” consequences for recipients.
A separate court ruling in Rhode Island also temporarily blocked the administration’s spending pause in a lawsuit filed by nearly two dozen states, according to the Associated Press. While some organizations reported difficulties accessing funds even after a previous memo was rescinded, attorneys representing plaintiffs in the case said the injunction has helped unfreeze certain payments.
FEMA has not indicated whether its additional grant payment reviews will be affected by these legal rulings. The agency advised recipients to contact their designated FEMA points of contact for any grant-specific questions.
Lexipol’s FireGrantsHelp team has been working with impacted awardees to determine next steps.
