The White House budget office, via a two-page memo on Monday, ordered all grants, loans, and federal assistance to be paused. This has raised alarm bells about whether the president can halt funding already allocated by Congress and what the consequence could be for the programs that depend on them.
Why is this happening? The Trump administration wants the government to stop funding prior administrations’ programs – which the memo accuses of advancing “Marxist equity, transgenderism, and green new deal social engineering” – so that it can harness those resources for its own priorities and executive orders. It calls for agencies to complete a “comprehensive analysis” to align their programs with Donald Trump’s recent executive orders on energy, immigration, and DEI. It also calls for a Trump administration official to be appointed to ensure federal funding “conforms to Administration priorities.”
The directive’s scope appears sweeping, potentially affecting nearly all federal agencies, with a temporary pause in place until they submit program information by Feb. 10. Meanwhile, a vast network of federal funding recipients – including those relying on disaster relief, education grants, transportation funding, NGO support, and foreign aid – face uncertainty about maintaining their operations during the freeze.
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