All federal grants and loan disbursement paused by White House
The White House budget office has ordered a pause on all federal grants and loans, according to an internal memorandum sent Monday.
Federal agencies 鈥渕ust temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,鈥� 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.
The memo specifies that the pause will not affect Social Security or Medicare benefits, nor does it include 鈥渁ssistance provided directly to individuals.鈥�
The freeze on federal assistance is slated to take effect at 5 p.m. Tuesday and could impact trillions of dollars. It marks the latest move by the Trump administration to exert control over federal funding, even that which has already been allocated by Congress.
鈥淭his temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President鈥檚 priorities,鈥� Vaeth wrote.
The memo suggests that the pause is in line with President Donald Trump鈥檚 executive orders last week.
The pause also applies to 鈥渙ther relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,鈥� according to the memo.
鈥淐areer and political appointees in the Executive Branch have a duty to align Federal spending and action with the will of the American people as expressed through Presidential priorities,鈥� Vaeth wrote.
鈥淔inancial 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 鈥榳okeness鈥� and the weaponization of government, promoting efficiency in government, and Making America Healthy Again,鈥� he continued. 鈥淭he 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.鈥�
According to the memo, the budget office 鈥渕ay grant exceptions allowing Federal agencies to issue new awards or take other actions on a case-by-case basis.鈥�
鈥淭o the extent required by law,鈥� agencies may also take 鈥渃ertain administrative actions鈥� like closing out grants, it states.
The memo calls on agencies to submit to OMB 鈥渄etailed information on any programs, projects or activities subject to this pause鈥� by February 10.
Sen. Patty Murray of Washington state and Rep. Rosa DeLauro of Connecticut 鈥� the top Democratic appropriators in Congress 鈥� wrote a letter to the White House on Monday night outlining their 鈥渆xtreme alarm鈥� with the move.
鈥淭he scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country,鈥� the lawmakers wrote. 鈥淲e write today to urge you in the strongest possible terms to uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law.鈥�
Senate Minority Leader Chuck Schumer also quickly criticized the pause.
鈥淐ongress approved these investments and they are not optional; they are the law,鈥� the New York Democrat said in a statement Monday night. 鈥淭hese grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities.鈥�
Schumer added that the action jeopardizes 鈥渂illions upon billions of community grants and financial support that help millions of people across the country.鈥�
鈥淚t will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities,鈥� he said.
CNN鈥檚 Manu Raju contributed to this report.