FAST DOWNLOAD
US: Trump pauses all federal grants, loan disbursement
United States President, Donald Trump, has ordered a pause on grants, loans, and other forms of federal financial assistance, according to a leaked government memo verified by CBS News.
The memo, signed by acting Office of Management and Budget (OMB) chief Matthew Vaeth, instructs government agencies to ensure spending aligns with Trump’s priorities, sparking criticism and legal questions about the scope of presidential authority.
The memo specifies that the pause includes “financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the Green New Deal.”
Notably, Medicare and Social Security benefits are exempt. Federal agencies have been given a deadline of 17:00 EST (22:00 GMT) to halt the issuance of new awards and disbursements under existing programmes, with a report on affected programmes due by 10 February.
The White House has yet to comment officially, but the leaked document has drawn swift condemnation from the Democratic Party.
Senate Minority Leader Chuck Schumer described the pause as “breathtaking and unprecedented,” warning, “It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities.”
Similarly, Washington Senator Patty Murray and Connecticut Congresswoman Rosa DeLauro, top Democratic appropriators, expressed “extreme alarm,” writing to the White House: “The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country.”
Diane Yentel of the National Council of Nonprofits warned that the freeze could halt vital services, including cancer research, food assistance, and suicide hotlines.
The pause comes on the heels of last week’s announcement by the State Department that nearly all foreign aid had been halted, sparing only emergency food aid and military funding for Israel and Egypt.
Trump had previously issued an executive order mandating a 90-day review of foreign development assistance to ensure alignment with his administration’s foreign policy.
The United States, the world’s largest international aid donor, spent $68 billion on aid in 2023, according to government figures.