January 13, 2025

Navigating Funding Registrations

In light of President Trump’s recent executive actions, significant changes are being proposed that could impact federal funding for various infrastructure projects. Freese and Nichols is closely monitoring these developments to understand their implications for our clients and their ongoing projects. This article provides an overview of the executive order issued on January 20, 2025 and its potential effects on funding through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA).

Background: The Executive Order

On January 20, 2025, President Trump issued a series of executive orders with the intention to limit federal spending and realign policies with the current Administration, including the Executive Order Unleashing American Energy. This Executive Order states, among other provisions, that funds appropriated through the IIJA, also known as BIL (Bipartisan Infrastructure Law), and the IRA shall be paused immediately. This is under Section 7, Terminating the Green New Deal, in the Executive Order.

Aftermath

The Office of Management and Budget (OMB) issued a series of memos related to this Executive Order, first pausing all federal funding and then rescinding the first memo. Two different groups have filed lawsuits against the Executive Order, stating that current federal funds should be accessible to all programs. Judges in both cases have issued Temporary Restraining Orders that prohibit the pause on federal funds. OMB is reviewing reports from agencies to ensure projects being funded match the Trump Administration’s priorities.

Why is this Important to Freese and Nichols?

Many of our clients have current projects with us that are being funded by the IIJA including Clean and Drinking State Revolving Fund Projects.

Current and Future Funding Implications

There should be no pause on current funding. Clients “should” be able to pull down all federal funding that has been awarded to them. This means current contracts, awarded grants, closed loans, and, in essence, funds that have been obligated are now being expended.

Funding for future projects remains unclear. This applies to funds that are unobligated but included in current grants. The Temporary Restraining Orders do not include future funding. Please review amendments to active Notice of Funding Opportunities (NOFOs) and to all new NOFOs for changes in requirements and language. The Trump Administration will carefully examine what is funded through the IIJA/BIL and IRA programs. Freese and Nichols and our clients should closely monitor these funding programs.

Communication Restrictions

The Environmental Protection Agency (EPA) is not allowed to communicate with state agencies at this time, which has been verified by Freese and Nichols.

References:

Unleashing American Energy – Executive Order
State of New York et al v. Trump et al
National Council of Non Profits et a. v. Office of Management and Budget et al

QUESTIONS?

• Contact Kate Burum, kate.burum@freese.com

About our Funding Team: With more than three decades of experience working with clients to navigate a myriad of infrastructure financial choices, the Freese and Nichols’ Funding Team helps communities apply for and access loan and grant funding. We provide technical assistance to clients on multiple funding alternatives, including water, wastewater, stormwater, transportation and hazard mitigation-type funding programs. The team has extensive experience mapping out funding strategies that involve both grant (including principal forgiveness) and low-to-zero-interest loans, assisting clients in building needed infrastructure projects as quickly as possible. These strategies are customized for each client based on their long-term development goals and constraints. In the last six years alone, Freese and Nichols has supported more than 75 projects funded by agency programs and has assisted clients in accessing more than $2.0 billion in funding.