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OAN Staff James Meyers
8:04 AM – Tuesday, January 28, 2025
The White House will be pausing federal grants and loans to certain departments beginning on Tuesday as President Donald Trump’s administration begins to review spending across the board.
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The Office of Management and Budget distributed a memo Monday ordering federal agencies to pause any federal financial assistance to allow Trump and his administration to review whether that aid is consistent with his policies.
The decision by the new administration could affect certain initiatives that were implemented by the previous administration.
“The 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,” said a memo from Matthew Vaeth, the acting director of the Office of Management and Budget.
The pause takes effect at 5 p.m. ET, on Tuesday, and it’s unclear from the memo how it will affect certain departments.
Vaeth said that all spending must comply with Trump’s executive orders, which will undo transgender and DEI policies.
Vaeth wrote that “each 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 President’s executive orders.”
Meanwhile, the order does, however, explicitly exclude Medicare and Social Security benefits from being affected. However, some experts believe this could affect the Pell Grant program, Supplemental Nutrition Assistance Program, and the Women, Infants, and Children program could possibly be frozen.
It also states that a freeze “does not include assistance provided directly to individuals.”
The announcement was met with backlash by Senate Minority Leader Chuck Schumer (D-N.Y.), claiming the order “blatantly disobeys the law.”
“Congress approved these investments and they are not optional, they are the law,” the New York Democrat said in a statement posted to X.
This order will lead to “missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities, state disaster assistance, local law enforcement, aid to the elderly, and food for those in need,” he continued.
Democrats doubled down on the order calling it “breathtaking, unprecedented, and will have devastating consequences across the country.”
The Democrats added: “We write today to urge you in the strongest possible terms to uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law.”
According to the memo, the agencies involved must submit the information on such programs by February 10th.
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