What this means for existing Local Assistance Program Supplement Agreements:
Executive Order (EO) 12898, “Federal Actions to Address Environmental Justice in Minority Populations and Low-income Populations” was officially rescinded by President Trump, which has been referenced in numerous Program Supplement Agreements (“PSAs”). While this change means the order is no longer legally enforceable, it’s important to understand how it affects existing agreements.
What the Rescission Means for Funding Agreements:
The rescission of the EO does not alter the terms of existing PSAs. However, since the EO was originally included as part of the PSA language, it will continue to appear in existing agreements as an informational item only. This means that while the EO is no longer enforceable, the text will remain within the agreement for reference.
Why Is the Language Still There?
The decision to keep the language of the rescinded executive order in PSAs is a matter of record and consistency. Since many PSAs were drafted when the order was active, removing or modifying the text in each document would be a significant undertaking. By keeping the language, agencies can maintain consistency across PSAs without implying that the order’s requirements are still in effect.
Moving Forward:
Organizations that have PSAs referencing the rescinded order do not need to take any action. The presence of the language within agreements is purely informational and does not impose any legal obligations. For any questions or further clarification, please reach out to your program officer or legal advisor.
Staying informed helps ensure compliance and proper understanding of evolving regulations.
Link to the Presidential Act from January 21st, 2025, rescinding EO 12898.
For questions or comments, please contact Ronnie Lesniak, Caltrans.