Skip To Content

News & Events: News & Events

Posts

  • February 12 2025

    Ilya Ross, a member of the Firm, was invited by NBI (National Business Institute) to present at their Marijuana Business Law In New York online seminar on March 18, 2025.  Mr. Ross will present on two key topics: Banking and Financing for the Marijuana Industry and Legal Best Practices for Marijuana Product Packaging and Labeling.  Click here for more information.

  • February 11 2025

    RenovoRx, Inc. announced the closing of its firm commitment, underwritten public offering of common stock in the amount of $12,100,000. EGS acted as counsel to RenovoRx.

  • February 10 2025

    Douglas Ellenoff was interviewed by Adam Torres with Mission Matters at this year’s Microcap Conference in Atlantic City, NJ.  Doug discussed the current state of the microcap market and shared his perspective on emerging trends.

    Click here to listen to the interview.

  • February 07 2025

    Client Alert: Ending Illegal DEI and DEIA Discrimination and Preferences

    On February 5, 2025, the United States Attorney General issued a Memo titled “Ending Illegal DEI and DEIA Discrimination and Preferences.” The Memo, among other things, includes a directive to the U.S. Department of Justice Civil Rights Division and the Office of Legal Policy to submit a report by March 1, 2025 on specific topics (“March Report”).

    Click here to read the alert.

  • February 06 2025

    Client Alert: Non-Profit Funding Update

    On January 27, 2025, the Office of Management and Budget issued a Memo directing agencies to freeze all funding while a comprehensive analysis was conducted of all government funded programs. The purpose of the review was to evaluate whether the government funded programs are in line with the Executive Orders that have been issued.

    Click here to read the alert.

  • February 06 2025

    Non-Profit Funding Freeze Update

    There have been multiple developments on various fronts related to government funding for non-profits.  The purpose of this Update is to break down where things stand for non-profits that receive federal funding.

    What is OMB M-25-13?

    On January 27, 2025, the Office of Management and Budget issued Memorandum M-25-13 (“Memo”) to federal agencies.  This Memo required federal agencies to “complete a comprehensive analysis of all their Federal financial assistance programs to identify programs, projects and activities that may be implicated by any of the President’s executive orders.”  This comprehensive analysis requires the Federal agencies to “identify and review all federal financial assistance programs and supporting activities consistent with the President’s policies and requirements.”

    The Memo cites to six Executive Orders (“EO”) that expound on the President’s policies and requirements:

    Pursuant to the Memo, OMB imposed a “temporary” pause on the disbursement of the financial assistance (funds) until the comprehensive analysis is complete.

    Court Ordered Stays on the Pause

    There are two court actions challenging the Memo and related government actions: one in the U.S. District Court for Rhode Island and the other in the U.S. District Court for the District of Columbia.  The National Council of Non-Profits is the lead plaintiff in the D.C. case, while twenty-two state Attorney Generals brought the action in Rhode Island.  Both District Courts granted the Temporary Restraining Orders (“TRO”) thereby prohibiting the freeze on the disbursement of federal funds.

    District of Columbia

    On January 28, 2025, the National Council of Non-Profits, American Public Health Association, Main Street Alliance and SAGE filed a motion for a temporary restraining order (“TRO”) and preliminary injunction to enjoin OMB from enforcing the freeze on the disbursement of funds.  That same day, the Court granted the TRO until February 3, 2025 and scheduled a hearing for that date.   After the hearing, the Court issued an opinion confirming the TRO on the funding freeze.  As of the date of this blog, funding shall continue to be disbursed.

    While the funds are flowing now, affected entities must pay attention to these opinions as they may provide guidance for what could come in the future.  The Government put forth the argument that the Executive Orders “contain language that could be construed as to require funding pauses…”  The Court acknowledged this possibility by stating, “[i]t is true that at least some of the executive orders contain language that could be construed as requiring fund pauses (albeit on much more drawn out timeline than [the Memo].”  The Court is signaling that perhaps some of EO’s could provide a basis to again stop disbursements under a process called “rescission”; however, the timeline of such rescission (and the mechanism) would be different.  Additionally, such rescissions would likely face challenges in court.

    Lastly, it is important to remember that this Order does not prohibit the federal agencies from conducting the “comprehensive analysis” of the federal financial assistance programs.  They just cannot withhold already appropriated federal funds.

    Rhode Island

    The Rhode Island lawsuit was brought by twenty-two Attorney Generals to enjoin the OMB from enforcing the disbursement freeze, alleging that it violates the Administrative Procedures Act.  The Court granted the TRO for the following reasons:

    • There is no legal authority for the Executive to unilaterally suspend the payment of Federal Funds to the States.
    • Congress instructed the Executive to provide funding to the states based on statutory factors.
    • The arbitrary pause threatens the states’ ability to conduct essential activities.
    • Congress appropriated these funds and the Executive’s refusal to disburse the funds is arbitrary and capricious.
    • The freeze violates the separation of powers.

    The bottom line is that the Court also issued a TRO enjoining OMB from effectuating the funding freeze.  The Rhode Island Court also indicated, however, that the federal agencies may still conduct the identification and review of the programs as listed in the Memo.  With that being said, the Court was explicit that the review “shall not affect a pause, freeze, impediment, block, cancellation, or termination of the Defendants’ compliance with such awards and obligations, except on the basis of the applicable authorizing statutes, regulations and terms.”

    What Does this Mean for Non-Profits Receiving Government Funding?

    As of the date of this article, the status quo remains.  All funding should be disbursed as it has been prior to January 28, 2025.  These two TRO’s will remain in effect until further hearings and briefings.

    However, the TRO’s do not seem to cover the work stoppage for individuals working for USAID and organizations funded by USAID.  Currently all work for USAID has been stopped except for work related to “life-saving humanitarian assistance” for a  90-day period.

    Lastly, it is crucial for organizations to consider that even if Government is permanently enjoined from effectuating the fund freeze as outlined in the Memo, the funding is not guaranteed.  It is probable that there will be attempts to take away funding based on the language in the Executive Orders (as discussed above).  Even more, organizations must understand that the federal agencies are not prohibited from conducting the process of identifying and reviewing the agencies, programs and fund recipients in accordance with the six Executive Orders listed above.

    Prudent organizations should take this time and evaluate and understand (1) the executive orders, (2) their funding sources.  Then, entities can properly assess risk and commence the process of implementing a plan to ensure that they can continue to exist and operate.

  • February 05 2025

    Webinar: Form I-9 Compliance and Audits; What To Do If ICE Agents Come to Your Business February 12, 2025 

    Immigration and Customs Enforcement (“ICE”) has promised a deportation effort of unprecedented scale. Increased Form I-9 audits and ICE raids will likely be part of that effort over the next four years.   Are you prepared for an ICE audit of your I-9 Forms?  Do your managers and employees know what to do if ICE shows up?  Our Labor & Employment team has designed a webinar to ensure that, in the case of your business, the answer to both questions will be “yes.”

    Click here to register.

  • February 03 2025

    Client Alert: Navigating DEI Programs During the Trump Administration

    In the face of the Executive Orders issued by President Trump, many not for profit organizations are questioning their DEI programs. So far, the Trump administration has issued several executive orders addressing DEI issues.

    Click here to read the alert.

“It’s with genuine appreciation to all of our clients that we are in a position to achieve and maintain our leadership position in so many areas.”