White House Clarifies Scope of Trump’s Federal Grant Funding Pause

The White House Office of Management and Budget (OMB) issued a memo Tuesday clarifying which programs are exempt from President Trump’s federal grant funding freeze, following backlash from Democrats and nonprofit groups.

While initial guidance lacked specifics, the memo confirms that programs providing direct benefits—such as Social Security, Medicare, Medicaid, SNAP, Pell Grants, and Head Start—will continue without interruption. However, other grants remain under review.

Despite administration assurances, some states reported losing access to the online Medicaid portal. White House press secretary Karoline Leavitt stressed that individual assistance payments remain unaffected and defended the move as responsible fiscal oversight, not an attempt to bypass Congress’s spending authority.

The freeze has drawn legal challenges from nonprofits and Democratic attorneys general, arguing it lacks legal basis and could disrupt funding for essential services.