The White House budget office has ordered a pause on all federal grants and loans. This order, according to an internal memorandum sent Monday, could potentially impact trillions in government spending. It might halt public programs that affect millions of Americans.
Federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” Matthew Vaeth said. He is the acting director of the White House Office of Management and Budget. CNN obtained a copy of the memorandum. The pause also blocks the issuance of new grants.
The memo specifies that the pause will not affect Social Security or Medicare benefits. It also excludes “assistance provided directly to individuals.”
The freeze on federal assistance is slated to take effect at 5 p.m. Tuesday. It marks the latest move by the Trump administration to exert control over federal funding. This applies even to funding that Congress has already allocated.
“This temporary pause will provide the Administration time to review agency programs. It will help determine the best uses of the funding for those programs. These uses must be consistent with the law and the President’s priorities,” Vaeth wrote.
The memo suggests that the pause is in line with President Donald Trump’s executive orders last week.
Via: Jim Watson/AFP/Getty Images
The pause also applies to other relevant agency activities that may be implicated by the executive orders. These activities include financial assistance for foreign aid and nongovernmental organizations. They also cover DEI, woke gender ideology, and the green new deal, according to the memo.
Career and political appointees in the Executive Branch have a duty to align Federal spending. They must also align action with the will of the American people. This will is expressed through Presidential priorities,” Vaeth wrote.
“Financial assistance should be dedicated to advancing Administration priorities. It should focus taxpayer dollars to advance a stronger and safer America. The aim is to remove the financial burden of inflation for citizens. We should unleash American energy and manufacturing. This includes ending ‘wokeness’ and the weaponization of government. Promoting efficiency in government is essential. Finally, we should focus on Making America Healthy Again,” he continued. “Federal resources are being used inappropriately to advance Marxist equity. They are also promoting transgenderism and green new deal social engineering policies. This is a waste of taxpayer dollars. These actions do not improve the day-to-day lives of those we serve.”
According to the memo, the budget office “may grant exceptions.” These exceptions allow Federal agencies to issue new awards. They can also take other actions on a case-by-case basis.
