The Trump administration directed federal agencies to temporarily halt loans and grants to review funding alignment with the president’s agenda. A memo from acting OMB Director Matthew Vaeth instructed agencies to pause “all activities related to obligation or disbursement of all Federal financial assistance” starting Tuesday at 5 p.m.
The pause excludes Social Security, Medicare, and direct individual assistance. Agencies will review whether programs align with Trump’s recent executive orders, covering border security, the federal workforce, and government reform.
Senate Minority Leader Chuck Schumer criticized the move, stating it defies the law and risks delaying vital community grants. “These grants help millions and are not optional,” Schumer said, warning of widespread disruption.
The White House did not comment. Trump and OMB nominee Russ Vought have signaled plans to expand executive authority over funding and potentially challenge the Impoundment Control Act.
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