HomeMy WebLinkAbout20250358.tiffa
January 30, 2025
COLORADO
Office of the State Controller
Department of Personnel @ Administration
1525 Sherman St., 5. Floor
Denver, CO 80203
Dear Grant Recipient:
On Monday, the federal government announced, in OMB Memorandum M-25-13, that it will be
pausing its disbursement of all grant funds through at least February 10, 2025. This order has
since been rescinded by OMB M-25-14, but the White House has indicated that the underlying
executive orders remain in effect. The original orders include grants that have already been
awarded and where work is already moving forward. While the situation is changing rapidly
and additional information or federal guidance clarifications may change in the coming days,
please be aware that grants awarded by the State of Colorado that are funded by federal
grant awards may be impacted by further federal action.
The State of Colorado joined 21 other jurisdictions in challenging the OMB directive. This
proceeding is still active and as of the issuance of this letter we have not received an
outcome from the litigation, although the judge overseeing the matter has indicated he is
likely to issue an order in the State's favor. At this time, an administrative stay to pause the
federal directive has been granted in another lawsuit. The stay applies to OMB's direction
that agencies pause disbursement of federal funds under all open awards. The stay is
currently set to expire at 5:00 p.m. Eastern time on February 3, 2025.
It is unclear what action the federal government will take, but it may include attempting to
cancel grants already awarded and refusing to disburse the funds for those grants. Given the
current uncertainty regarding federal funding, the State encourages grant recipients to incur
only those expenses that are necessary to the continuing operation of their program.
The State recognizes that the federal government's actions have created substantial
uncertainty and is continuing to evaluate all of its options to ensure the federal government
1525 Sherman St., Denver, CO 80203 P 303.866.6200 osc.colorado.gov
Jared S. Polis, Governor I Tony Gherardini, Executive Director
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2025-0358
meets its commitments. The State intends to continue to honor its payment obligations under
the federally funded grants it has awarded so long as the federal government continues to
make the associated funds available.
The State is continuing to monitor developments related to federal funding and will provide
further updates as they become available. We will follow up with additional information when
available.
Sincerely,
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Robert Jaros, CPA, MBA, JD
Colorado State Controller
1525 Sherman St., Denver, CO 80203 P 303.866.6200 osc.colorado.gov
Jared S. Polls, Governor I Tony Gherardini, Executive Director
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