Energy & Environment — EPA halts fund disbursement

Presented by American Petroleum Institute — The Environmental Protection Agency (EPA) has halted disbursement of federal aid as part of an order from the White House Office of Management and Budget (OMB) to halt loan and grant distribution.

View Online Energy & Environment Energy & Environment   PRESENTED BY  The Big Story  EPA halts fund disbursement under OMB memo The Environmental Protection Agency (EPA) has halted disbursement of federal aid as part of an order from the White House Office of Management and Budget (OMB) to freeze loan and grant distribution, officials with the agency confirmed to The Hill on Tuesday. © AP Photo/Pablo Martinez Monsivais, File In a memo issued Monday, OMB imposed a deadline of 5:00 p.m.  Tuesday to pause all financial assistance spending while it assesses the alignment of assistance programs with President Trump's policy agenda.   OMB acting Director Matthew Vaeth directed all federal agencies to freeze "all activities related to obligation or disbursement of all federal financial assistance" to the "extent admissible by applicable law."   "EPA is working diligently to implement the Office of Management and Budget's memorandum, Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs, to align Federal spending and action with the will of the American people as expressed through President Trump's priorities," an EPA spokesperson said in an email to The Hill.   "The agency is temporarily pausing all activities related to the obligation or disbursement of EPA Federal financial assistance at this time. EPA is continuing to work with OMB as they review processes, policies, and programs, as required by the memorandum."   Potentially affected EPA activities include the agency's Water Infrastructure Finance and Innovation Act loan program, as well as grant programs related to air pollution, children's health and competitive grant funding through the Office of Land and Emergency Management.   Read more at TheHill.com. Welcome to The Hill's Energy & Environment newsletter, we're Rachel Frazin and Zack Budryk — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains. Did someone forward you this newsletter? Subscribe here. Essential Reads  How policy will affect the energy and environment sectors now and in the future: Ousted IG: Trump firings 'a potentially existential threat' to government oversight One of 17 government watchdogs ousted by President Trump said that the move was "a potentially existential threat" to a crucial government oversight tool.   Full Story East Palestine, railroad reach $22 million settlement East Palestine, Ohio, has reached a $22 million settlement with the railroad that operated the train that derailed there in 2023, spilling toxic chemicals and making national headlines.  Full Story Haaland to run for New Mexico governor Former Interior Secretary Deb Haaland will run to be the next governor of New Mexico, a spokesperson confirmed to The Hill.  Full Story In Other News  Branch out with a different read from The Hill: 'An exercise in political abuse': Republicans face legislative gantlet with reconciliation Top Senate Republicans want to pass their party's wide-ranging agenda with two different acts by using a legislative process called budget reconciliation, a technical workaround that avoids the Democratic filibuster in the Senate and allows a law to be passed with a simple majority. Full Story What We're Reading  News we've flagged from other outlets touching on energy issues, the environment and other topics: Interior, EPA set deadlines for staffers to return to the office (Politico)   Trump memorandum stalls most New Jersey wind projects (New Jersey Monitor) A MESSAGE FROM AMERICAN PETROLEUM INSTITUTE Protect Consumer Energy Choice 73% oppose bans on gas stoves, furnaces, and vehicles. Support affordable, reliable energy free form mandates. Learn why consumer choice matters for our future! On Tap  Upcoming news themes and events we're watching: On Wednesday, the Senate Commerce, Space and Technology Committee will hold a hearing on Trump's Commerce nominee Howard Lutnik (reminder: the Commerce Department houses NOAA,  the National Oceanic and Atmospheric Administration).  What Others are Reading  Two key stories on The Hill right now: Judge temporarily blocks Trump's plan to freeze federal aid  A federal judge temporarily blocked President Trump's plan to freeze federal aid minutes before it was set to go into effect late Tuesday afternoon.  Read more States lose access to Medicaid payment portal amid Trump federal aid freeze State Medicaid programs across the country reported Tuesday they had lost access to federal payment portals one day after President Trump announced a freeze on federal grants and aid. Read more Opinions in The Hill  Op-ed related to energy & environment submitted to The Hill: Trump needs to transform FEMA, not shut it down   You're all caught up. 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