Navigating the Temporary Federal Grant Freeze: Stay Prepared and Stay Ahead

The Trump administration has introduced a temporary freeze on federal grants and loans, shaking up the current funding landscape. What does this mean for grant applications and funding opportunities? We’ve got you covered.

We understand the recent news about the federal grant freeze might feel unsettling and confusing, but this isn’t the first time something like this has happened – and it certainly won’t be the last. The key takeaway? This is temporary, and the best thing you can do right now is to stay prepared and keep moving forward.

• This freeze is temporary — it’s just a review process, not a cancellation.
• Past freezes have lasted a few days to a few weeks, not forever.
• Federal law requires that allocated funds be used as planned.
• The smartest move right now is to stay on track with your grant application process.

On January 28, 2025, the Trump administration announced a temporary freeze on federal grants and loans. Why? They want to make sure all programs align with the administration’s policy priorities, including new executive orders on diversity, equity, and inclusion (DEI) initiatives, foreign aid, nongovernmental organizations, environmental policies, and gender-related programs. 

While it’s understandable to feel uncertain, these types of pauses are common when a new administration wants to review spending. Our biggest piece of advice for grant applicants is to stay proactive and continue preparing their applications. In the meantime, we’re here to answer any questions you may have about the freeze and put your mind at ease!

Agencies are required to submit detailed reports to the United States Office of Management and Budget (OMB) by February 10, 2025, outlining programs subject to the pause. The duration of the freeze may vary; some agencies might resume grant activities shortly after their review, while others could experience longer delays.

Historically, such administrative pauses have lasted from a few days to a few weeks, with the longest pause, lasting several weeks, occurring during the 2013 government shutdown. The length of the pause depends on the scope of the review and the specific programs involved.

It’s highly unlikely that the grant freeze would become permanent. Here’s why: Federal law, specifically the Impoundment Control Act, requires the government to spend funds as directed by Congress. That means the money has already been allocated, and it has to be used. Programs like the Small Business Innovation Research (SBIR) program, which has been extended through September 2025, already have secure funding. While delays can be frustrating, there’s no reason to believe this will be a long-term issue.

"Budget reviews are a regular part of federal funding when a new administration takes over and even after. The federal funding process can be unpredictable, and factors like Continuing Resolutions and government shutdowns can sometimes cause delays or shifts in grant deadlines — just last year, the NSF SBIR solicitation saw deadlines extended, with the revised window announced only 30 days before the new deadline.

“These changes aren't always clearly communicated to the public, so having the help of a Grant Expert can ensure you're in the know and ready to submit as soon as the opportunity becomes available.

“The best strategy is preparation, so you’re ready when these changes happen. Our team of Grant Experts is here to work with you, helping you navigate these opportunities and secure the funding you deserve.”

Sharlee Bingham

Head of Growth @ Grantify

Will the Freeze Impact Program Budgets for This Fiscal Year?

In short, no. The SBIR program has been extended by Congress through to September 2025, and funding for the program has been authorized through that period. While future funding is subject to annual appropriations, any delays related to the current freeze are expected to be short-term, and the funding that has already been allocated remains intact as directed by Congress.

Next Steps: What Should Grant Applicants Be Doing Now?

We can’t stress this enough — don’t hit the pause button on your grant applications! If you’ve already submitted your proposal or you’re about to submit, it’s still expected to be considered once the freeze lifts. You might just experience some delays in processing and reviews.

Historically, once these freezes lift, agencies quickly get back to business as usual. If you stop preparing now, you might find yourself scrambling to meet deadlines when things open back up. Plus, if others put their applications on hold, staying proactive could actually give you an edge when funding resumes!

In Need of Expert Advice?

Take our quick, free quiz to see if you could be eligible for a federal grant, and book in for a no-commitment consultation with a Grantify Expert.

Check your eligibility

‍