In recent days, the Office of Management and Budget (OMB) has been at the center of significant developments, particularly with the confirmation of Russell Vought as the Director of the OMB and the issuance and subsequent rescission of a controversial memorandum.
On February 6, 2025, Russell Vought was confirmed by the Senate as the Director of the OMB, a position he previously held during President Trump's first term. Vought's confirmation was on a party-line vote of 53-47, with Democrats expressing strong opposition due to his radical and maximalist approach to conservative policy goals. Vought has been a key architect of Project 2025, a conservative blueprint for Trump’s second term aimed at slashing federal spending and regulations[4].
Prior to Vought's confirmation, the OMB had issued Memorandum M-25-13 on January 27, 2025, directing federal agencies to temporarily pause all activities related to the obligation or disbursement of federal financial assistance. This pause was intended to allow agencies to review their programs for consistency with President Trump’s executive orders, which cover a range of policy areas including foreign aid, energy production, DEI programs, and gender ideology. The memo also allowed for discretionary case-by-case exceptions where agencies could seek permission from OMB to issue new awards or take other actions inconsistent with the spending pause[1][2].
The issuance of this memo sparked immediate legal challenges. On January 28, 2025, the National Council of Nonprofits and other plaintiffs filed a complaint in federal court in Washington D.C., challenging the OMB memo as unlawful and seeking a temporary restraining order and injunction. In response, the federal court issued an administrative stay on portions of the memo, specifically halting the pause on the disbursement of federal funds under all open awards until February 3, 2025[1].
However, before the court's deadline, the OMB rescinded Memorandum M-25-13 on January 29, 2025, through Memorandum M-25-14. This rescission came after the temporary stay was imposed, and it indicated that any questions about implementing the President’s executive orders should be directed to the agency's General Counsel. Despite the rescission, it remains unclear whether new directives will be issued or if the lawsuits challenging the original memo will proceed[1][2].
Vought's return to the OMB is expected to continue the administration's aggressive approach to federal spending and policy alignment. His role will be crucial in implementing President Trump’s goals, including the development of the White House budget, policy priorities, and agency rule-making. The OMB under Vought is already poised to shake up federal spending, reflecting the administration’s commitment to cutting regulations and addressing what it sees as excessive spending[4].
