OMB Memo M-25-13 Rescinded: What It Means for Tribal Nations
Summary
On January 27, 2025, the Office of Management and Budget (OMB) issued a federal funding freeze, causing concerns across Indian Country. Essential programs, including Tribal healthcare, education, and public safety, faced sudden uncertainty. A federal judge blocked the freeze on January 28, and by January 29, the White House rescinded the memo.
While the rescission prevented immediate harm, federal funding challenges and reviews continue, meaning Tribal programs could still face risks. Understanding these changes is critical for Tribal leaders, policymakers, and communities.
As federal policies shift, Indigenous Pact is tracking these developments, advocating for Tribal sovereignty and funding protections, and providing clarity for Tribal leaders navigating these changes.
What This Update Covers:
Why OMB Memo M-25-13 was rescinded
How legal challenges and advocacy efforts influenced the outcome
What the rescission does and does not mean for Tribal funding
Why continued Tribal advocacy is essential
What Led to the Rescission?
Purpose of OMB Memo M-25-13
The funding freeze under Memorandum M-25-13 was issued to pause federal financial assistance programs while agencies reviewed their alignment with the new administration priorities. The broad directive included funding for healthcare, education, infrastructure, and other essential services.
However, it lacked clear guidance on:
Which programs would be affected
How long the freeze would last
How agencies would determine compliance
This lack of transparency created widespread confusion among Tribal governments, state agencies, and grant recipients.
The vague language of the memo left Tribal Nations, local governments, and federal funding recipients uncertain about how their programs would be impacted. Critical services such as Medicaid payments, school funding and Tribal health programs faced possible disruption.
The White House later attempted to provide further information on the freeze, stating that Social Security, Medicare, and SNAP benefits were exempt, but this did little to ease concerns for Tribal programs.
Legal Challenges & Advocacy Efforts
Legal Pressure & Court Intervention
With no clear legal justification for the freeze, lawsuits were quickly filed. A coalition of nonprofit organizations and 22 state attorneys general challenged the memo, arguing that:
· OMB overstepped its authority in pausing congressionally approved funding.
· The administration failed to provide clear guidance, delaying funding reimbursements.
· The directive created widespread confusion, as funding recipients struggled to determine which programs were affected.
On January 28, 2025, a federal judge issued an injunction, temporarily blocking the freeze. The next day, January 29, 2025, the White House rescinded OMB Memo M-25-13.
While this legal victory may have prevented immediate harm, federal funding reviews remain ongoing, meaning Tribal programs are still at risk.
Key Questions Still Unanswered:
How will funding reviews impact specific Tribal programs?
Will certain grants or funding streams be reduced or eliminated?
Will agencies require alignment with new federal priorities before releasing funds?
Tribal Funding & Historical Uncertainty
Tribes have long experienced the consequences of unclear federal policies. From broken treaty obligations to delayed funding distributions, federal decision-making inconsistencies have repeatedly disrupted healthcare access, economic stability, and essential services.
Recent events, like COVID-19, reinforced this pattern. Vague directives, slow responses, and funding delays left Tribes struggling to secure critical resources. This cannot happen again. Tribes deserve clear, precise guidance to make informed decisions and ensure that vital services remain protected.
In the next section, we break down what the recission in effect means for Tribes —and what it does not—so all can have the clarity needed to move forward.
What the Recission of OMB Memo M-25-13 Means
Federal grants, loans, and funding that were paused under the memo can now resume unless explicitly reviewed for modification or cancellation.
Programs previously at risk of immediate suspension should continue operating, including Medicaid reimbursements, economic development grants, infrastructure funding, and health services.
Legal challenges played a significant role in overturning the funding freeze, demonstrating the power of organized advocacy efforts.
What It Doesn’t Mean
Federal funding is no longer at risk. The administration has made it clear that a broader review of federal financial assistance programs is still underway.
Tribal programs are automatically protected. The administration is continuing a broad review of federal funding, meaning that Tribal programs—along with other federal grants—could still be subject to changes.
The need for Tribal advocacy is over. Now, more than ever, Tribes must engage in the federal decision-making process to ensure that funding essential to sovereignty, healthcare, and economic stability remains secure.
Tribal Advocacy: Where We Stand Moving Forward
The recission of OMB Memo M-25-13 was necessary, but the broader fight to protect Tribal funding is far from over.
National Advocacy Efforts & Tribal Leadership
The Native American Rights Fund (NARF) emphasized that the funding freeze disproportionately affected Tribes, reinforcing the need for strong legal and policy advocacy to ensure the federal government upholds its trust and treaty responsibilities. John Echohawk, NARF’s Executive Director, stated:
The National Indian Health Board (NIHB) addressed the impact on Tribal Healthcare, warning that even temporary disruption in funding can destabilize essential services. In a letter to Congress, NIHB and the National Council of Urban Indian Health (NCUIH) described how the funding freeze led to confusion, disrupted services, forced Tribal health programs to reschedule patient appointments, and created uncertainty for staffing and operations. The letter further emphasized that historical funding disruptions have directly impact the health and mortality rates of American Indian and Alaska Native (AI/AN) people and called on Congress to ensure clear, precise guidance in the future.
The National Indian Education Association (NIEA) raised concerns about how Tribal programs could be misclassified under broader federal policies, potentially limiting access to crucial funding. NIEA joined other national Native organizations in calling for:
Formal recognition of Tribal Nations as distinct political entities.
Upholding trust and treaty obligations in federal funding decisions.
Ensuring Tribal consultation on policy changes that affect education and economic development.
These advocacy efforts reinforce a broader reality: Tribal Nations cannot be left in the dark when it comes to federal funding decisions that directly impact their communities.
The Bottom Line
The recission of OMB Memo M-25-13 removed an immediate funding threat, but questions remain about how ongoing federal funding reviews will impact Tribal programs. Uncertainty in federal funding decisions can disrupt essential services, making transparency and clear guidance critical.
At Indigenous Pact, we will continue to track these developments and provide updates through our Intergovernmental Affairs Office. We are committed to ensuring that Tribal leaders have the information they need to navigate these changes and advocate for the resources their communities rely on.
For policy updates, guidance, or direct support, contact our Intergovernmental Affairs Office at:
We are here to provide clarity, advocacy, and expert guidance as we navigate these uncertainties together.
For more information or to discuss how these federal funding changes could impact your community, contact Indigenous Pact’s Intergovernmental Affairs Office at ashley@indigenouspact.com. We’re here to provide the clarity and support you need to navigate what’s next.