Trump administration scraps freeze on grants

Trump administration scraps freeze on grants

By Trains Staff | January 29, 2025

| Last updated on August 6, 2025


Delay of funds, placed on hold by judge, put numerous rail programs in doubt

Trains Washington Watch logoWASHINGTON — The Trump administration has rescinded its freeze on federal grants, which created confusion regarding a broad variety of government programs, including some in the rail industry.

The Washington Post reports that a memo today (Jan. 29, 2025) from Matthew J. Vaeth, acting director of the Office of Management and Budget, said an order issued on Monday “is rescinded.” That order called on federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.”

The initial order spurred widespread confusion, placing in doubt a wide variety of existing grants for Amtrak and for other rail programs, such as the Consolidated Rail Infrastructure and Safety Improvements (CRISI) program [see “Amtrak and rail program funding caught …,” Trains News Wire, Jan. 28, 2025]. It also spurred at least two lawsuits, one of which resulted in a federal judge delaying the freeze, which was set to begin at 5 p.m. ET on Jan. 28, until at least Feb. 3.

Earlier in the day, 31 Democrats on the House Transportation and Infrastructure Committee wrote newly confirmed Transportation Secretary Sean Duffy, saying the freeze was putting “billions of dollars, hundreds of thousands of jobs, and tens of thousands of projects at risk,” and asking for clarification to “steam the chaotic affects” of the freeze. That request now appears to be academi.

— This is a developing story. Watch Trains News Wire for more information as it becomes available.

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