On Monday, the Trump Administration ordered all federal agencies to halt the distribution of grants and loans, so the White House can conduct a full investigation of the allocation of funds in a bid to cut wasteful government spending.
As The Hill reports, the memorandum was issued by the Office of Management and Budget (OMB), with Acting Director Matthew Vaeth ordering all federal agencies to stop “all activities related to obligation or disbursement of all Federal financial assistance.”
“This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities,” the memo declares, while noting critical exceptions for Social Security and Medicare benefits.
The ordered pause will take effect at 5 PM on Tuesday. Going forward, OMB may grant further exemptions on an individual basis.
During the pause, the agencies will be ordered to go through a review of all loans and grants, in order to determine which spending may be permanently cut off due to President Donald Trump’s numerous executive orders since taking office.
Democrats criticized the halt of government spending, with Senate Minority Leader Chuck Schumer (D-N.Y.) falsely claiming that such an action “blatantly disobeys the law.”
“Congress approved these investments and they are not optional; they are the law,” Schumer claimed. “These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities.”
President Trump has vowed to drastically reduce government spending that is determined to be wasteful, redundant, or otherwise unnecessary. He has established an advisory committee called the Department of Government Efficiency (DOGE), to be led by billionaire Elon Musk, for the purpose of determining which agencies and federal jobs can be eliminated altogether.