Jan. 29, 2025
Dear Colleagues,
On Monday evening of this week, we received news that the Trump Administration was placing a pause on federal grants (鈥溾). However, Tuesday morning, we received direction from the Office of Management and Budget (OMB) that this pause should not affect federal financial aid, including Pell Grants and student loans (鈥溾).
As we were assessing how this pause might affect other federal grants that Cal State Channel Islands receives鈥攊ncluding research and sponsored programs grants鈥攚e learned that two lawsuits were filed challenging the OMB directive, one filed by nonprofit organizations, and another filed by 22 states and the District of Columbia. Yesterday we learned that U.S. District Judge Loren AliKhan has issued a temporary administrative stay of the OMB directive in the first lawsuit. This judicial stay, which remains in effect at least through Monday, February 3 at 5 p.m., means that the administration cannot implement the disbursement suspension in Memorandum M-25-13 of any congressionally appropriated funds until further legal proceedings take place. A similar stay is being sought today in the states鈥 lawsuit. Earlier today, OMB issued a further memorandum (M-25-14) rescinding its prior memorandum (M-25-13) accompanied by a statement by the White House press secretary on social media that this 鈥渋s NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. 鈥 The President鈥檚 EO鈥檚 [sic] on federal funding remain in full force and effect and will be rigorously implemented.鈥
We have been actively engaged since Monday evening, reviewing updates, consulting with stakeholders, and working diligently to secure federal grant funding that does not implicate the White House executive orders. The judicial stay applies to these types of grants, and we hope to confirm the receipt of all obligated funds no later than Monday, February 3.
At this time, there are no changes in work or pay for employees in partially or fully grant-funded positions. However, we recognize that many of our colleagues at Cal State Channel Islands and across the system are concerned about the potential impact of future legal decisions on jobs and critical programs supported by federal funding. We remain committed to preserving these positions to the greatest extent possible and the important work being done through federal assistance.
This situation remains fluid, and we are committed to keeping you informed as more details emerge following Monday鈥檚 hearing. We appreciate your patience and will continue to update the campus community as soon as we have new information.
Sincerely,
Richard Yao, Ph.D.
President