01/28/2025

Trump's White House Pauses All Federal Grants and Loan Disbursements

The freeze on federal assistance is slated to take effect at 5 p.m. on Jan. 28

The White House budget office has ordered a pause on all federal grants and loans, according to an internal memorandum sent Monday; this order potentially impacts trillions in government spending and halting public programs that affect millions of Americans.

Federal agencies "must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance," White House Office of Management and Budget (OMB) 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. The memo specifies that the pause will not affect Social Security or Medicare benefits, nor does it include "assistance provided directly to individuals."

“More lawlessness and chaos in America as Donald Trump’s administration blatantly disobeys the law by holding up virtually all vital funds that support programs in every community across the country," said a statement from Senate Minority Leader Chuck Schumer, a Democrat from New York. “If this continues, the American people will pay an awful price.”

Please select this link to read the complete article from CNN.