USCTA Alert

January 29, 2025

This afternoon, the White House’s OMB rescinded a controversial memorandum that directed each federal agency, including the FAA, to “temporarily pause” all activities related to the “obligation or disbursement of all Federal financial assistance” that may be implicated by any of the executive orders signed by President Trump since he took office last week.
 
On Monday evening, the OMB issued the directive, which raised questions over the potential impacts of the temporary pause on airport-specific grant programs, including the Airport Improvement Program (AIP) or funding made available through the Infrastructure Investment and Jobs Act (IIJA), known as the Bipartisan Infrastructure Law (BIL). Throughout Tuesday, significant concerns and questions were raised by lawmakers, the media, recipients of federal financial assistance, and the general public. It received nationwide attention. By the end of the day, a judge for the U.S. District Court for the District of Columbia issued an administrative stay of the OMB order until Monday, February 3, to allow for further briefing and to determine whether a longer stay was necessary.
 
With the OMB memorandum rescinded now, we expect the administration of AIP and BIL-related grant programs will continue to function as normal. However, it is unclear yet whether the White House or OMB may try to draft a narrower memorandum or take any other actions to pause and/or scale back federal financial assistance, including grants. We will be closely monitoring activity within the administration and on the Hill to ensure grant funding for airports is protected.