All federal grants and loan disbursement paused by White House, internal memo says
The White House budget office has ordered a pause on all federal grants and loans, according to an internal memorandum sent Monday.
Federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” White House Office of Management and Budget acting director Matthew Vaeth said in the memorandum, a copy of which was obtained by CNN. The pause also blocks the issuance of new grants.
The freeze on federal assistance is slated to take effect at 5 p.m. Tuesday and could impact trillions of dollars. It marks the latest move by the Trump administration to exert control over federal funding, even that which has already been allocated by Congress.
The memo suggests that the pause is in line with President Donald Trump’s executive orders last week.
The pause also applies to “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,” according to the memo.
“Career and political appointees in the Executive Branch have a duty to align Federal spending and action with the will of the American people as expressed through Presidential priorities,” Vaeth wrote.
According to the memo, the budget office “may grant exceptions allowing Federal agencies to issue new awards or take other actions on a case-by-case basis.”
The memo calls on agencies to submit to OMB “detailed information on any programs, projects or activities subject to this pause” by February 10.
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