Future of federal funding uncertain following funding freeze

WASHINGTON, D.C. — A Jan. 28 memo from the Office of Management and Budget pausing federal grants and loans sent shockwaves throughout the country, including in the security industry. 

Companies like ZeroEyes and its ZE Government Solutions (ZEGS) and Shooter Detection Systems and its secure grants program rely on federal funding and could have been affected by the freeze.   

While the memo was retracted on Jan. 29, industry stakeholders like the Security Industry Association (SIA) continue to follow the issue closely. 

“(SIA) is actively tracking this issue and provided updates as needed,” said Jake Parker, senior director of government relations for SIA. “We are interested in hearing from members regarding any impact expected from these events, especially regarding specific grant programs.” 

Following the memo, there was panic and confusion about what programs and entities would be affected. Some entities found themselves unable to access funding, as government agencies struggled to determine what programs were or were not still eligible for funding under the freeze. 

Even after the retraction and several legal challenges, parts of President Donald Trump’s Executive Orders freezing funding remain in effect, according to Press Secretary Karoline Leavitt. 

“This is NOT a recission of the federal funding freeze,” she wrote in an X post on January 29. “It is simply a recission of the OMB memo. Why? To end any confusion created by the court’s injunction. The President’s EOs on the federal funding remain in full force and effect and will be rigorously implemented.” 

Still, one industry stakeholder contacted by SSN declined to comment on the issue, saying it was a “moot point” following the retraction. 

Following a lawsuit brought by the attorney generals of 22 states, the U.S. District Court for the District of Rhode Island issued a temporary restraining order on Jan. 31. Judge John J. McConnel Jr., citing evidence that the administration continued to freeze funding and defy court orders to disburse funding, ordered the administration to comply with his previous ruling on Feb. 10. 

SIA has asked any of its members impacted to provide any feedback to Lauren Bresette, senior manager of government relations at SIA, lbresette@securityindustry.org. 

Editor Cory Harris contributed to this story.