FHLBank Chicago Update on OMB Memo for Temporary Pause of Agency Grant, Loan and Financial Assistance Programs
UPDATE - Jan. 30, 2025: We are aware that on Jan. 29, 2025, the White House rescinded the OMB memo to federal agencies to temporarily freeze federal funding. The White House has also stated that the funding freeze remains in effect through the President's Executive Order on funding reviews. At this time, there is still no impact on FHLBank Chicago's privately funded grant programs.
We have heard from several of our members inquiring about the White House Office of Management and Budget (OMB) memo that directs federal agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” beginning Tuesday at 5 p.m. E.T.
The recent OMB memo directing federal agencies to pause federal financial assistance programs has raised questions about the impact this has, if any, on our Affordable Housing Program (AHP), Downpayment Plus® (DPP®) programs or other grant programs. At this time, the FHLBanks have not been directed by the Federal Housing Finance Agency (FHFA) to pause or change anything regarding AHP, DPP or voluntary programs. We are aware that late this afternoon, a federal judge has temporarily blocked the Trump administration’s order to freeze all federal aid through at least Feb. 3, 2025. We will keep members informed if further information becomes available.
We also know many of you have questions about how the Trump administration’s executive orders issued last week could change our business and initiatives. These orders do not directly impact FHLBank Chicago, but FHFA priorities and regulations may continue to change, and as part of the FHLBank system, FHLBank Chicago may need to adjust certain policies or programs to remain in compliance.
Earlier this month, President Trump nominated Bill Pulte to be the next director of the FHFA. He will need to be confirmed by the U.S. Senate and sworn in, which is expected to take several months. We look forward to working collaboratively with him to deliver on our mission.
As we navigate changes brought by the new administration, FHLBank Chicago remains committed in our mission to support our members and the communities we serve.