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News Flash: EPA Restores Grants, Contracts Still Frozen

January 31, 2017

Recently, we reported that President Trump had temporarily suspended all EPA grant and contract awards shortly after taking office, and advised contractors to carefully scrutinize their contracts to protect their rights under the FAR. On January 26, the EPA announced that the freeze on some state grants had been lifted. By email and video conference on Friday, January 27, the Acting EPA Administrator Catherine McCabe announced the lifting of the freeze on all grants.   

In an email to EPA staff, McCabe stated: “As of today, we have completed review of our grant programs. All grants are proceeding normally, and nothing has been delayed. This includes environmental program grants and state revolving loan fund grants to the states and tribes.”  

Contract awards presumably remain frozen, and concerns remain that the Government may cancel EPA solicitations, decline to exercise options, or even issue terminations for convenience or default. We will follow up as more information is forthcoming.