The White House budget office has ordered a pause on all federal grants and loans, potentially impacting trillions in government spending and halting public programs that affect millions of Americans, CNN reports.
Federal agencies "must temporarily suspend all activities related to the obligation or disbursement of all federal financial assistance," said Matthew Vaeth, acting director of the White House Office of Management and Budget, in the memo, which was obtained by US media. The pause also blocks the awarding of new grants, writes A2 CNN.
The memo specifies that the pause will not affect Social Security or Medicare benefits, nor does it include “assistance provided directly to individuals.” The freeze on federal aid is scheduled to take effect at 5 p.m. Tuesday. It marks the latest move by the Trump administration to exert control over federal funds, even those already appropriated by Congress.
The memo suggests the pause is in line with President Donald Trump's executive orders last week. The pause also applies to "other relevant agency activities that may be affected by the executive orders, including, but not limited to, foreign aid funding, nongovernmental organizations, DEI, gender-smart ideology, and the Green New Deal," according to the memo.
Senate Minority Leader Chuck Schumer was quick to criticize the decision. “Congress approved these investments, and they are not optional; they are the law,” the New York Democrat said in a statement. Schumer added that the action jeopardizes “billions and billions of community grants and financial support that help millions of people across the country.” (A2 Televizion)
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