January 28, 2025

Trump White House orders freeze on federal grants, loans

Roll Call  - President Donald Trump’s budget office on Monday ordered all federal agencies to temporarily block disbursement of grants and loans — other than for Social Security, Medicare and other programs providing direct aid to individuals.

The memo says the temporary pause, effective starting at 5 p.m. on Tuesday, is intended to ensure agencies are complying with Trump’s executive orders to root out “Marxist equity, transgenderism, and green new deal social engineering policies” from programs within their purview.

It’s not immediately clear how wide-ranging the pause will be in practice, due to the Office of Management and Budget’s ability to grant exceptions on a “case-by-case basis,” language exempting direct aid to individuals and a clause that states the pause is subject to what’s “permissible under applicable law.” 

But the new administration is clearly painting with a broad brush, at least at the outset. More 

NY Times - The White House budget office ordered a pause in grants, loans and other federal financial assistance, a sweeping move it said was necessary to bring programs in line with President Trump’s priorities. It was not immediately clear which programs would be affected, although the scope could be vast. The memo said Medicare and Social Security benefits were exempt, but much else was unclear, including whether Mr. Trump can unilaterally halt funds allocated by Congress.


No comments: