{"id":29220,"date":"2025-02-25T12:55:06","date_gmt":"2025-02-25T20:55:06","guid":{"rendered":"https:\/\/essential.construction\/news\/some-federal-funds-are-still-frozen-heres-what-builders-can-do\/"},"modified":"2025-02-25T12:55:06","modified_gmt":"2025-02-25T20:55:06","slug":"some-federal-funds-are-still-frozen-heres-what-builders-can-do","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/some-federal-funds-are-still-frozen-heres-what-builders-can-do\/","title":{"rendered":"Some federal funds are still frozen. Here\u2019s what builders can do"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">5 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"http:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1740510271\/news\/text_to_speech\/federal-funding-freeze-tips-stop-work_yrthcb.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>Uncertainty continues to plague infrastructure and climate projects as federal agencies defy court orders telling them to disburse funding. Federal contractors are navigating the fallout \u2014 including paused and terminated work \u2014 as Trump\u2019s directive to halt federal money continues to be challenged in court.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>President Donald Trump\u2019s Jan. 20 \u201cUnleashing American Energy\u201d order told federal agencies to stop paying out Infrastructure Investment and Jobs Act and Inflation Reduction Act funds.\u00a0 Although courts halted the directive, federal agencies have continued to implement the freeze while they review projects for compliance with the new administration\u2019s agenda.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>For example, the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/washingtonstatestandard.com\/2025\/02\/05\/washington-leaders-offer-more-detail-on-federal-funding-blocked-by-trump\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>Washington DOT has seen money halted<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> for bridge work and court-mandated culvert replacement efforts, among other programs, the Washington State Standard reported.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In a high-profile case, newly appointed Transportation Secretary Sean Duffy ordered a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.masstransitmag.com\/rail\/infrastructure\/article\/55270151\/us-transportation-secretary-duffy-directs-fra-to-review-california-high-speed-rail-project\" target=\"_blank\"><span><span><span><span><span><span><span><span>review of the California High-Speed Rail<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> Authority\u2019s compliance with the terms of some of its federal agreements, Mass Transit reported, imperiling $4 billion in federal funding for the project.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>A federal judge heard arguments on Feb. 21 about whether to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.npr.org\/2025\/02\/21\/g-s1-50084\/trump-funding-freeze-court-hearing\" target=\"_blank\"><span><span><span><span><span><span><span><span>further block the Trump administration from freezing<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> trillions of dollars in federal grants and other spending, in a lawsuit brought by 22 attorneys general, NPR reported.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Agencies defy orders to dole out funds<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Two lawsuits blocked an Office of Management and Budget memo implementing Trump\u2019s order via temporary restraining order on Jan. 29. However, federal agencies have continued to implement the freeze, arguing the temporary restraining order rulings have a limited scope, said Jackie Unger, partner and Government Contracts Group lead at Washington, D.C.-based law firm PilieroMazza, during a Feb. 12 webinar.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cAgencies continue to freeze funds, they\u2019ve refused to resume disbursement of appropriated funds and they\u2019ve continued to issue stop work orders and terminate contracts,\u201d Unger said.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The judge in the Feb. 21 case subsequently said that the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.nbcnews.com\/politics\/donald-trump\/judge-finds-trump-administration-violated-court-order-halting-funding-rcna191528\" target=\"_blank\"><span><span><span><span><span><span><span><span>agencies\u2019 actions violated his temporary restraining order<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> and clarified the scope, NBC reported, explaining that it prohibits all freezes in obligated funding based on OMB\u2019s memo and Trump\u2019s executive order.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe clarification may give contractors the ability to challenge agency actions in response to the executive orders, if they\u2019re seeing impacts from those,\u201d Unger said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The government has appealed the temporary restraining orders up to the First Circuit Court of Appeals, per Unger, but the courts have so far rejected requests for an immediate stay, which would have allowed the funding freeze to go back into effect. As the issue works its way through the legal system, the precise implications of Trump\u2019s order may not be fully understood for months.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In the meantime, here are some steps that civil contractors can take if they are facing orders to stop work.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dealing with stop work orders<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>A federal contracting officer can tell contractors via written order to stop work at any time, typically under the Federal Acquisition Regulation 52.242-15 clause, for a 90-day window, said Lauren Brier, partner at PilieroMazza, in the webinar. The officer can extend that period, but they must have reasonable justification and it has to be agreed upon by both parties, so contractors can push back.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Contractors are entitled to standby costs, which are overhead or costs that directly result from the stop work order, but they must also mitigate the situation by furloughing employees, communicating on lease costs and demobilization on jobsites, for example.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cOnce a stop work order is issued, the contractor has an immediate duty to mitigate costs,\u201d Brier said. \u201cYou can\u2019t just have people sitting on your payroll for the 90-day period and expect the government to make that payment.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The contracting officer is required to make an equitable adjustment in the delivery schedule and contract price, Brier said. Requests for equitable adjustment are typically due within 30 days of the lift of the stoppage and may include items such as attorney\u2019s fees, administrative costs and internal costs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>However, \u201cthere\u2019s no regulatory requirement for the government to respond, so they can sit on that,\u201d Brier said. <\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In light of that potential delay, she offered some best practices for dealing with stop work orders:<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<ul>\n<li><span><span><span><span><span><span>Immediately inform your contracting officer of your intention to file a request for equitable adjustment.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Begin working to mitigate costs and record proof of mitigation.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Document efforts to implement stop work.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Consider filing a claim in lieu of a request for equitable adjustment to ensure timely processing of the cost request.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span><span><span><span><span><span>\u201cAnother thing that we are suggesting clients do is when they receive a stop work notice, that they reserve their right to challenge the high-level directive to stop work,\u201d Brier said. \u201cBecause a lot of these courts are starting to determine these funding freezes as illegal or unlawful, potentially these stop works that are flowing from these executive orders are similarly unlawful.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/federal-funding-freeze-tips-stop-work\/740884\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 5 min This audio is auto-generated. Please let us know if you have feedback. Uncertainty &#8230; <a title=\"Some federal funds are still frozen. Here\u2019s what builders can do\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/some-federal-funds-are-still-frozen-heres-what-builders-can-do\/\" aria-label=\"Read more about Some federal funds are still frozen. Here\u2019s what builders can do\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-29220","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/29220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=29220"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/29220\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=29220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=29220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=29220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}