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White House pauses federal grant, loan and other assistance programmes

Agencies have until February 10 to submit detailed information on any programmes, projects or activities subject to the pause, the memo states

Published: Tue 28 Jan 2025, 10:42 AM

Updated: Tue 28 Jan 2025, 4:59 PM

  • By
  • Reuters

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The White House on the first full day of the Trump administration in Washington, US, on January 21, 2025. – Reuters file

The White House on the first full day of the Trump administration in Washington, US, on January 21, 2025. – Reuters file

The Trump administration has temporarily paused grant, loan and other financial assistance programmes at the Office of Management and Budget, according to a memo seen by Reuters, prompting criticism from congressional Democrats.

The memo referenced the executive orders, including those seeking to dismantle programs related to diversity, equity and inclusion (DEI), President Donald Trump has signed since taking office last week.

"In the interim, to the extent permissible under applicable law, federal agencies must temporarily pause all activities related to obligation or disbursement of all federal financial assistance, and other relevant agency activities that may be impacted 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," Matthew J. Vaeth, the acting director of the Office of Management and Budget, wrote in the memo.

The suspension goes into effect on January 28 at 5 p.m. eastern time (2200 GMT), according to the memo.

Top Democratic congressional budget appropriation lawmakers responded to reports of the memo by sending a letter demanding the OMB reverse its decision.

"The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country. 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,” Democratic Senator Patty Murray and Democratic Representative Rosa DeLauro wrote.

Agencies have until Feb. 10 to submit detailed information on any programmes, projects or activities subject to the pause, the memo states.

The suspension will provide the administration with time to review agency programmes and determine the best uses of funding for those programmes consistent with the law and Trump's priorities, it added.

Agencies must identify legally mandated actions or deadlines for assistance programmes before completing the analysis, it added.

Vaeth directed federal agencies to halt all activities associated with open notices of funding opportunities.

"This memorandum requires federal agencies to identify and review all federal financial assistance programs and supporting activities consistent with the president's policies and requirement," Vaeth wrote.



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