WASHINGTON – The White House is pausing federal grants and loans starting on Tuesday as President Donald Trumpโs administration begins an across-the-board ideological review of its spending.
The funding freeze by the Republican administration could affect trillions of dollars and cause widespread disruption in health care research, education programs and other initiatives. Even grants that have been awarded but not spent are supposed to be halted.
โThe use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,โ said a memo from Matthew Vaeth, the acting director of the Office of Management and Budget.
Democrats and independent organizations swiftly criticized the administration, describing its actions as capricious and illegal because Congress had already authorized the funding.
โMore lawlessness and chaos in America as Donald Trumpโs Administration blatantly disobeys the law by holding up virtually all vital funds that support programs in every community across the country,โ said a statement from Senate Minority Leader Chuck Schumer, a Democrat from New York. โIf this continues, the American people will pay an awful price.โ
The pause takes effect at 5 p.m. ET, and itโs unclear from the memo how sweeping it will be. Vaeth said that all spending must comply withย Trumpโs executive orders, which are intended to undo progressive steps onย transgender rights, environmental justice andย diversity, equity and inclusion, or DEI, efforts.
Vaeth wrote that โeach agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the Presidentโs executive orders.โ
Medicare and Social Security benefits will be unaffected by the pause, according to the memo. But there was no explanation of whether the pause would affect Medicaid, food stamps, disaster assistance and other programs. The memo said it should be implemented โto the extent permissible under applicable law.โ
