**”Breaking News: White House Pauses All Federal Grant and Loan Programs – What Comes Next for American Aid?”**
By Steve Holland and Jasper Ward, Washington (Reuters) – The Trump administration has temporarily halted grant, loan, and other financial assistance programs at the Office of Management and Budget, as per a memo obtained by Reuters, drawing criticism from congressional Democrats. The memo made reference to the executive orders, including those aimed at dismantling programs related to diversity, equity, and inclusion (DEI), which President Donald Trump has signed since assuming office last week.
“In the meantime, federal agencies must, to the extent allowed by law, temporarily suspend all activities related to the obligation or disbursement of federal financial assistance, and other relevant agency activities that could be impacted by the executive orders, inclusive of financial aid for foreign assistance, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,” wrote Matthew J. Vaeth, the acting director of the Office of Management and Budget, in the memo.
The suspension is set to be effective on January 28 at 5 p.m. Eastern Time (2200 GMT), according to the memo. Top Democratic congressional budget appropriation lawmakers reacted to reports of the memo by sending a letter demanding the OMB reverse its decision.
“The breadth of what you are mandating is remarkable, unprecedented, and will have far-reaching consequences nationwide. We are writing today to strongly urge you to abide by the law and the Constitution and ensure that all federal resources are distributed in compliance with the law,” wrote Democratic Senator Patty Murray and Democratic Representative Rosa DeLauro.
Agencies are required to provide detailed information on any programs, projects, or activities subject to the pause by February 10, as outlined in the memo. The suspension aims to give the administration time to review agency programs and decide on the best allocation of funds for those programs in line with the law and Trump’s priorities.
Agencies are instructed to identify legally mandated actions or deadlines for assistance programs before concluding the analysis. Vaeth ordered federal agencies to cease all activities related to open notices of funding opportunities.
“This memorandum compels federal agencies to identify and reassess all federal financial assistance programs and supporting activities in line with the president’s policies and requirements,” wrote Vaeth.
(Reporting by Steve Holland and Jasper Ward; additional reporting by Bo Erickson; Editing by Kate Mayberry)
