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County staff brief commissioners on temporary federal grants pause and related litigation
Summary
County budget staff and counsel briefed the Riley County Commission about a brief White House/OMB pause on federal grants, subsequent litigation and a federal temporary restraining order; staff said reimbursements are the norm for grants and the county is monitoring risks to several programs.
Riley County budget and finance staff and the county counselor briefed the commission on Feb. 3 about a recent, short-lived White House/Office of Management and Budget memorandum that sought a temporary pause on federal financial assistance and the litigation that followed.
Britney Phillips, Riley County budget and finance officer, told commissioners that on Jan. 22 the White House issued OMB memorandum M-25-13 pausing certain federal financial assistance, and that later litigation produced a temporary restraining order that prohibited agencies from pausing or terminating awards based on that memorandum. Phillips said the Department of Justice and other parties moved quickly; the White House later issued a rescinding memorandum (M-25-14) before the litigation proceeded to a preliminary injunction hearing.
Phillips reviewed county programs that rely on federal grants and outlined the mechanics of reimbursement grants: "All of these grants are reimbursement grants," she said. County staff pay salaries and program costs and then request reimbursement; a pause could interrupt those reimbursements and affect cash flow for programs such as WIC, community corrections (BJA grant funding for a recovery-court officer), and other federally supported positions and services.
Jacob Hansen, county staff and legal counsel participation noted the federal TRO was entered in U.S. District Court for Rhode Island and that the order, as written, directed federal agencies to "immediately comply" with the court’s prohibitions on pausing awards; the order applies broadly to awards beyond the plaintiff states. Legal staff cautioned that a preliminary injunction hearing will determine how long the TRO remains in place and that the county should prepare to respond if further actions are required.
County staff said they are coordinating with Kansas agencies and national grant-administration advisors and will return to the commission if the litigation or federal guidance requires local action. For now, staff recommended continued monitoring and told commissioners the county would continue normal operations until notified otherwise.
