White House halts federal grants, loans, and assistance programs
The Trump administration has put a temporary hold on grant, loan, and various financial assistance programs managed by the Office of Management and Budget, as revealed in a memo obtained by Reuters.
This action is linked to executive orders aimed at eliminating initiatives tied to diversity, equity, and inclusion (DEI) that President Donald Trump has enacted since taking office last week.
“Until further notice and in accordance with applicable laws, federal agencies must stop all activities related to the obligation or distribution of any federal financial assistance, as well as other agency functions that may be affected by the executive orders. This includes, but is not limited to, financial support for foreign aid, non-profit organizations, DEI programs, ‘woke’ gender ideology, and the Green New Deal,” stated Matthew J. Vaeth, the acting director of the Office of Management and Budget, in the memo.
This suspension will take effect on January 28 at 5 p.m. Eastern Time (2200 GMT), as outlined in the memo.
Agencies are required to present comprehensive details about any programs, projects, or activities that are affected by the pause by February 10, according to the memo.
Administration to assess agency programs
The temporary halt will allow the administration to evaluate agency programs and decide how to allocate funding in a way that aligns with the law and Trump’s policy goals, the memo noted.
Agencies need to pinpoint legally required actions or deadlines related to assistance programs before finalizing their assessments, it emphasized.
Vaeth instructed federal agencies to suspend all operations connected to currently open funding opportunities.
“This memorandum mandates federal agencies to locate and scrutinize all federal financial assistance programs and related activities to ensure they comply with the president’s policies and guidelines,” Vaeth wrote.
(Reporting by Jasper Ward; Editing by Kate Mayberry)