All federal grants and loan disbursement paused by White House
CNN
The White House budget office has ordered a pause on all federal grants and loans, according to an internal memorandum sent Monday.
The White House budget office has ordered a pause on all federal grants and loans, according to an internal memorandum sent Monday. Federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” 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 “assistance provided directly to individuals.” 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. “This 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’s priorities,” Vaeth wrote. The memo suggests that the pause is in line with President Donald Trump’s executive orders last week.
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