An executive order mandating that agencies stop disbursing money for programs funded under infrastructure and climate laws wasn’t intended to be applied broadly, according to fresh guidance issued by the Office of Management and Budget.
On Monday, President Donald Trump issued an executive order that ordered agencies to “immediately pause the disbursement of funds” from the 2021 infrastructure law and the Inflation Reduction Act, which in addition to pumping federal dollars into energy and climate initiatives also fund a wide array of highway, bridge and transit projects. The potential impact to ongoing construction infrastructure projects prompted an almost immediate backlash from lawmakers, states and industry.
But on Wednesday morning, OMB sought to limit the order’s scope to climate change programs, electric vehicle charging grants and other spending that Trump opposes.
“This pause only applies to funds supporting programs, projects, or activities that may be implicated by the policy established in Section 2 of the order,” a memo to federal agency leaders published online early Wednesday reads. The guidance document itself was dated Tuesday.
