Notice of Temporary Restraining Order

On February 3, 2025, the Environmental Protection Agency (EPA) issued a memorandum to all its contractors notifying them of a Temporary Restraining Order (TRO) issued by the U.S. District Court for the District of Rhode Island on January 31, 2025. This court order addresses a legal challenge brought by multiple states against an Executive Branch action embodied in the Office of Management and Budget's (OMB) Memorandum M-25-13, which called for a temporary pause on certain federal financial assistance programs, including agency grants, loans, and other funding. The TRO was issued in response to allegations that this pause was implemented without congressional authorization, potentially violating statutory and constitutional provisions such as the Administrative Procedure Act, the separation of powers, and the Spending Clause. The court’s TRO underscores that the Executive Branch overstepped its authority by imposing an indefinite freeze on appropriated funds, which threatens critical state functions and lacks clear statutory support or proper notice. The order intends to prevent irreparable harm to the states by maintaining the availability of federal funding while the case progresses. EPA contractors received this notice along with the full text of the court’s order to ensure they are aware of the current legal status regarding the suspension of federal financial assistance. Contractors are instructed to direct any inquiries about the implications or scope of this Order to their Contracting Officers.