By Sarah Baafi
The White House has ordered a temporary suspension of all federal grants, loans, and financial assistance programs, effective January 28, 2025, at 5 PM EST. This directive , detailed in a memo from Matthew Vaeth, acting director of the Office of Management and Budget, mandates federal agencies to halt all activities related to the obligation or distribution of financial assistance while aligning with President Trump‘s policy objectives.
The memo emphasizes that this pause will not affect Social Security or Medicare benefits and aims to assess agency programs for compliance with Trump’s directives, particularly regarding diversity, equity, and inclusion initiatives and environmental policies. Critics argue that this sweeping freeze could disrupt vital services relied upon by millions of Americans, including food and rent assistance programs.
Democratic leaders have condemned the move as unprecedented and potentially devastating, urging the administration to reverse its course. They warn that the suspension could lead to chaos across universities and non-profit organizations, impacting essential community services.
The memo requires agencies to report by February 10 on which programs are affected, creating uncertainty about the long-term implications for federal assistance. This action follows a recent suspension of foreign aid initiatives, raising concerns about the administration’s broader strategy to consolidate control over federal expenditures.
As the administration navigates this pause, it faces potential legal challenges regarding its authority to unilaterally freeze funds allocated by Congress. Observers note that such actions echo previous controversies during Trump’s first term.
Source : BBC
