The White House has issued a memo calling for a spending freeze on federal assistance by Tuesday afternoon, potentially impacting a wide range of programs from disaster relief to aid for nonprofits and universities. The memo, leaked Monday night, directs federal agencies to review all financial assistance programs in light of President Trump's executive orders, specifically targeting 'DEI, woke gender ideology and the Green New Deal.' While the White House insists Medicare and Social Security benefits will not be affected, Democrats have condemned the move as 'lawlessness and chaos,' arguing that it disregards congressionally approved funding. The order could face legal challenges and has drawn criticism from advocacy groups who warn of devastating consequences for vital services.
A memo from the White House budget office is calling for a spending freeze on federal assistance by 5 p.m. Tuesday, which could affect everything from aid to nonprofits, universities, small business loans and state and local government grants. The freeze could have wide-ranging implications, with the White House noting that $3 trillion was spent in 2024 on federal assistance programs.
'This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President's policies and requirements,' the memo says. The White House has not yet commented on the memo, which was leaked Monday night. CBS News has confirmed its authenticity. The Monday night memo from the Office of Management and Budget is directing federal agencies to assess compliance with President Trump's executive orders — specifically targeting 'DEI, woke gender ideology and the Green New Deal.' It does not give specifics on what these policies refer to, especially since the Green New Deal was never signed into law. 'The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,' the memo says. The White House said it will not affect Medicare or Social Security benefits. Democrats were already on the offensive on Tuesday morning, with Senate Minority Leader Chuck Schumer criticizing the move's 'lawlessness and chaos' and saying it is 'holding up virtually all vital funds that support programs in every community across the country.''Congress approved these investments and they are not optional; they are the law,' Schumer said in a statement. Schumer noted that this temporary freeze could affect disaster assistance, aid to elderly and school lunch programs. The order could face legal challenges. Diane Yentel, the president and CEO of the National Council of Nonprofits, issued a statement on social media calling the order a 'potential 5-alarm fire for nonprofits.''From pausing research on cures for childhood cancer to closing homeless shelters, halting food assistance, reducing safety from domestic violence, and shutting down suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives,' Yentel said. 'This order could decimate thousands of organizations and leave neighbors without the services they need.
FEDERAL ASSISTANCE SPENDING FREEZE WHITE HOUSE DONALD TRUMP EXECUTIVE ORDERS DEMOCRATS REPUBLICANS CONGRESS DISASTER RELIEF NONPROFITS UNIVERSITIES SOCIAL PROGRAMS
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