The Office of Management and Budget (OMB) directed federal agencies, in a Jan. 27 memorandum, to suspend the distribution of grants, loans, and other financial assistance while the programs are under review.
A memo, from OMB Acting Director Matthew Vaeth, directs federal agencies to conduct a comprehensive analysis of all financial assistance programs to determine whether they are aligned with the executive orders signed by President Donald Trump after his inauguration on Jan. 20.
“In the interim, to the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other 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,” it stated.
Vaeth stated in his memo that the pause will allow the government more time to review agency programs and determine the best uses of funding for those programs consistent with the law and Trump’s priorities.
White House Pauses Federal Grants, Loans
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