Federal Home Loan Bank of Chicago

01/29/2025 | Press release | Distributed by Public on 01/28/2025 19:50

FHLBank Chicago Update on OMB Memo for Temporary Pause of Agency Grant, Loan and Financial Assistance Programs

We have heard from several of our members inquiring about the White House Office of Management and Budget (OMB) memo that directs federal agencies to "temporarily pause all activities related to obligation or disbursement of all Federal financial assistance," beginning Tuesday at 5 p.m. E.T.

The recent OMB memo directing federal agencies to pause federal financial assistance programs has raised questions about the impact this has, if any, on our Affordable Housing Program (AHP), Down Payment Plus® (DPP®) program or other grant programs. At this time, the FHLBanks have not been directed by the Federal Housing Finance Agency (FHFA) to pause or change anything regarding AHP, DPP or voluntary programs. We are aware that late this afternoon, a federal judge has temporarily blocked the Trump administration's order to freeze all federal aid through at least February 3, 2025. We will keep members informed if further information becomes available.

We also know many of you have questions about how the Trump administration's executive orders issued last week could change our business and initiatives. These orders do not directly impact FHLBank Chicago, but FHFA priorities and regulations may continue to change, and as part of the FHLBank system, FHLBank Chicago may need to adjust certain policies or programs to remain in compliance.

Earlier this month, President Trump nominated Bill Pulte to be the next director of the FHFA. He will need to be confirmed by the U.S. Senate and sworn in, which is expected to take several months. We look forward to working collaboratively with him to deliver on our mission.

As we navigate changes brought by the new administration, FHLBank Chicago remains committed in our mission to support our members and the communities we serve.