Each week, Liebert Cassidy Whitmore provides a summary of newly issued Executive Orders and other significant Presidential and federal actions that have a foreseeable impact on governance, compliance, and operational policies for California employers. The summaries below outline the key provisions of each action, along with our brief analysis of their potential implications for municipal agencies, school districts, private schools, and nonprofits.
PRESIDENTIAL MEMORANDUM: Use of Appropriated Funds for Illegal Lobbying and Partisan Political Activity by Federal Grantees
On August 28, 2025, President Trump issued a memorandum directing the Attorney General to investigate whether federal grant funds are being “illegally used to support lobbying activities and to take appropriate enforcement action.”
The memorandum focuses on the use of federal funds for grants with political overtones, which, according to the administration, raises concerns that grantees are unlawfully using the funds for lobbying or political advocacy. The Fact Sheet accompanying the memorandum provides examples of grants that the administration intends to investigate, including the U.S. National Science Foundation funding a grant to advance racial justice in elementary mathematics.
The memorandum directs the Attorney General to provide a report on her investigation to the President within 180 days. Thus, the memorandum will not have an immediate impact on the availability of federal funds.
LCW will continue to provide updates on this and similar executive actions regarding federal grants and contracts and the impact those actions may have on federal funding recipients’ operations, including with respect to DEI-related programs and activities.
UPDATE: Judge Blocks Trump’s Attempt to Cut Funding for Additional Sanctuary Cities
On August 22, 2025, U.S. District Judge William Orrick expanded a preliminary injunction blocking the Trump administration from cutting off or conditioning the use of federal funds, including Housing and Urban Development (HUD) grants, for so-called “sanctuary” jurisdictions that limit cooperation with federal immigration efforts.
The recent injunction widened the scope of Judge Orrick’s April 24th preliminary injunction, which shielded cities and counties including San Francisco, Santa Clara, Oakland, Emeryville, San Jose, San Diego, Sacramento, Santa Cruz, and Monterey. The August 22nd ruling extended protection to Los Angeles, Alameda, Berkeley, Benecia, Culver City, Cathedral City, Marin, Menlo Park, Pacifica, Palo Alto, Petaluma, Rohnert Park, San Mateo, Santa Rosa, Sonoma, and Watsonville, among other cities and counties.
The injunction is related to the Executive Orders entitled “Protecting the American People Against Invasion” (January 20, 2025) and “Ending Taxpayer Subsidization of Open Borders” (February 19, 2025),
UPDATE: Ninth Circuit Blocks President Trump’s Freeze on UC Research Grants (August 28, 2025)
On August 21, 2025, the Ninth U.S. Circuit Court of Appeals denied the Trump administration’s request to stay a June 2025 preliminary injunction that required the federal government to reinstate terminated research grants to the University of California (UC). The administration initially froze the grants pursuant to President Trump’s January 20th Executive Order targeting funding related to diversity, equity, inclusion (DEI) and environmental justice.
The Ninth Circuit dismissed the government’s arguments that the terminations were discretionary and insulated from judicial review. The court emphasized that under federal regulations, executive agencies cannot arbitrarily cut funding without clear reasoning. The court also reasoned that the selective targeting of DEI and environmental justice projects amounted to unconstitutional viewpoint-based restrictions.
The order will not have an immediate impact on the UCs, as the administration has been prohibited from freezing the funds since June.
If you have any questions about the above linked Presidential actions, please contact our Los Angeles, San Francisco, Fresno, San Diego, or Sacramento offices.