The DoD issued a statement Tuesday clarifying that defense contracts won’t be impacted by the Trump Administration’s order to freeze federal grants.
WASHINGTON, D.C., USA — Amid some of the confusion on Tuesday after the Office of Management and Budget issued a memorandum ordering the freeze of federal loans and grants, the Department of Defense felt it necessary to issue a clarification.
“The scope of the OMB M-25-13 memo on financial assistance instruments does not include contracts,” the statement read. “Contrary to certain media accounts, the Department of Defense has not paused contract awards.”
However, they added that they will temporarily halt “activities related to the obligation or disbursement of financial assistance, to the extent permissible under applicable law,” as ordered by the memorandum.
“While we are not aware of any specific contracts or other activities affected, it is possible that activities may be paused if they are determined to fall within the bounds of the guidance,” the statement reads.
The freeze was blocked by a federal judge and will be in effect until Monday, Feb. 3.
Recently, Secretary of Defense Pete Hegseth was ordered to shut down any and all efforts related to Diversity, Equity and Inclusion (DEI) within the military. Trump also issued an executive order on Monday that will likely lead to the effective banning of transgender people from serving.
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