The Biden administration has announced a temporary halt to all federal grant payments, citing the need to review agency programs and align spending with presidential priorities. The pause targets funding for foreign aid, non-governmental organizations, diversity, equity, and inclusion (DEI) initiatives, and the 'green new deal,' which the administration considers wasteful. This move could significantly impact states reliant on federal funding.
The White House's budget office announced a temporary halt to all federal grant payments, effective Tuesday at 5 p.m., according to an internal memo distributed to federal agencies on Monday. The memo, penned by Matthew J. Vaeth, the acting director of the Office of Management and Budget, outlined a 'temporary pause' in the 'disbursement of all Federal financial assistance.
' Vaeth stated that this pause would grant the administration time to meticulously evaluate agency programs and determine the most efficient allocation of funds in accordance with both legal frameworks and the President's established priorities.The memo specifically targeted a range of government spending linked to 'financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,' deeming these areas a 'waste of taxpayer dollars.' Vaeth emphasized the need for all federal agencies to conduct a comprehensive review of their grants and programs, ensuring alignment with the new administration's policy objectives.This freeze on federal grants could significantly impact states heavily reliant on federal funding, such as Alaska, which received over $6,500 per capita in federal grants in 2023, according to a report by the Federal Funds Information for States (FFFIS). The report revealed that a substantial portion of these grants, exceeding 50% in Alaska's case, is directed towards Medicaid. This development coincides with President Donald Trump's early actions in office, which included reversing policies pertaining to diversity, equity, and inclusion (DEI). Shortly after his inauguration, he issued an executive order terminating DEI programs within the federal government. Furthermore, Trump established the Elon Musk-led 'Department of Government Efficiency' (DOGE) with the mandate to curtail government spending and dismantle regulations
FEDERAL GRANTS BUDGET SPENDING REVIEW DEI FOREIGN AID
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