Impact of Federal Funding Pause on Aging Services

A message to LeadingAge members from president and CEO Katie Smith Sloan.

Late Monday, January 27, 2025, the Trump administration, via the Office of Management and Budget (OMB), issued a memo with details of a “temporary pause of agency grant, loan and other financial assistance programs,” which, according to the document, is carrying out the mandate provided to the administration by the election “to increase the impact of every taxpayer dollar” and end “...‘wokeness’ and the weaponization of government.”

During the pause, agencies will review all programs as directed by the memo to ascertain those that are consistent with President Trump’s policies and requirements. Specifics as to how this program will be executed—aside from saying that agencies are to respond to OMB by February 7—are scant.

Based on LeadingAge’s initial review of the memo, as well as information we are gleaning from other sources, this directive casts a very wide net across federal funding and is a significant concern with the potential to impact the funding that many LeadingAge members rely on to serve older adults across many care settings and community types.

While Social Security and Medicare are exempt from the temporary freeze, other types of federal financial assistance, grants, and loans are included in the order’s scope. LeadingAge is working to understand the breadth and depth of the impact. A January 28 OMB-issued “Frequently Asked Questions” on the memo says that Medicaid (part of the Department of Health and Human Services) and “rental assistance” will continue and will not be impacted by the pause. However, numerous LeadingAge members are reporting that access to their Medicaid and Department of Housing and Urban Development (HUD) rental assistance funding is currently blocked.

In short, confusion about the extent of the directive’s impact is significant.

Other HHS and HUD programs, as well as those of the Department of Veterans Affairs (VA), the Department of Labor (DOL) and other agencies, will certainly be impacted. Ascertaining the specifics on how and when are our top priorities—along with advocating to end the freeze immediately.  

Watch for an action alert on the federal financial assistance funding pause coming from us later today.

Information on this is emerging rapidly and more federal guidance is hoped for soon. Our team in Washington, DC, will remain in close communication with you via our website, our state partners, and other communications channels.