The White House budget office has instructed a temporary pause on all federal grants and loans, impacting trillions of dollars in funding. The order, issued by acting director Matthew Vaeth, cites a need to review agency programs and align spending with President Trump's priorities. The pause, taking effect Tuesday, excludes Social Security and Medicare benefits and assistance directly to individuals. It also targets funding for foreign aid, nongovernmental organizations, diversity, equity, and inclusion (DEI) initiatives, among other areas.
The White House budget office has ordered a pause on all federal grants and loans, according to an internal memorandum sent Monday. Federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” White House Office of Management and Budget acting director Matthew Vaeth said in the memorandum, a copy of which was obtained by CNN. The pause also blocks the issuance of new grants.
“Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, promoting efficiency in government, and Making America Healthy Again,” he continued.
FEDERAL FUNDING TRUMP ADMINISTRATION BUDGET PAUSE CONGRESS EXECUTIVE ORDERS
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