White House Budget Office Orders Pause in All Federal Loans and Grants
![White House Budget Office Orders Pause in All Federal Loans and Grants White House Budget Office Orders Pause in All Federal Loans and Grants](https://i0.wp.com/static01.nyt.com/images/2025/01/27/multimedia/27trump-news-federal-grants-halted/27trump-news-federal-grants-halted-facebookJumbo.jpg?w=780&resize=780,470&ssl=1)
The White House budget office ordered temporarily stopping grants, loans and other federal financial assistance, according to a memorandum sent to government agencies on Monday, which is likely to paralyze a wide range of programs, ambiguity and warning seed between the group of groups that depend on them.
He threatened to raise the money that is going throughout the American economy: Hundreds of billions of dollars In grants to the state and local and Tribal governments. Disaster relief assistance. education and communications Funding. Loans to Small companies.
But the note consisting of two pages of Matthew J. Faith, the Acting Director of the Department of Administration and Budget, left the scope of temporary suspension, and unclear.
Among the uncertainty whether President Trump has the power to stop the boxes unilaterally allocated by Congress. Senator Chuck Schumer of New York, the Democratic Leader of the Senate, said in a statement that the memo “is blatantly opposing the law.”
“Congress approved these investments and they are not optional, as they are the law.” Mr. Shomer saidAdding that “Donald Trump must direct his administration to the opposite of the path immediately and taxpayers must be distributed to people.”
In his note, Mr. Fether directed federal agencies to “temporarily stop all activities related to commitment or disburse all federal financial assistance”, and any other programs that included “Dei, the ideology of both sexes and the new green deal.”
Mr. Faith indicated that the temporary suspension, which is scheduled to enter into force on Tuesday, will continue until at least mid -February, saying that the agencies must submit a detailed report on the programs affected by February 10. He added. A temporary stop was needed to ensure that federal programs are compatible with the priorities of Mr. Trump’s policy.
“The use of federal resources to enhance Marxist property, sexual transformation, and new green social engineering policies are a waste of taxpayers that do not improve the lives of those we serve.”
It is not immediately clear programs that will fall under these categories. The new green deal, for example, was a policy proposal This has never become the law.
The memo that was I mentioned earlier By journalist Marisa Kabas, she determines that programs that support NGOs will also be affected. Non -profit groups interact with alert.
“This is a possible fire of five ponds for non -profit organizations, people and societies they serve,” said Diane Yentel, CEO of the National Council of Non -profit organizations.
She added: “From stopping research on childhood cancer treatments to stopping nutritional assistance, safety from domestic violence and closing the hot lines of suicide, the effect of even the short stopping on financing may be destroyed and a cost life.” “This may lead to canceling thousands of organizations and leaves neighbors without the services they need.”
The memo was martyred “more than 3 trillion dollars” in federal financial assistance that could be affected by the guidance, but the source of this number was not clear, and there was another number that was cited in the total federal spending. Government analysts estimated the fiscal year 2024 budget in 6.75 trillion dollarsWhile Mr. Fayth’s memo confirmed that the government spent “nearly 10 trillion dollars” in that fiscal year.
The budget office was granted an exception to the “assistance that individuals received directly”, in addition to the advantages of medical care and social security. The memorandum also recognized the legal restrictions of the executive authority to interfere in the programs delegated legally, saying that the agencies should be temporarily implemented “to the extent allowed under the applicable law.”
It was also not clear what happened in light of the definition of individual aid, and the memo did not provide examples of the programs that you will achieve or not qualify. Many farmers and business owners come out loans and receive grants from the federal government, but it is unclear whether they will consider individual assistance or assistance to a company.
For example, Congress has created a program decades ago that provides loans for farms for indigenous women, ethnic and American minorities – a program The first Trump administration shared. This program can be theoretically placed under scrutiny due to its perceived similarities with “waking”, “Dei” or “Marxist fairness”.
Karl Schools, President of Oregon University, said on Monday “generates many questions.” But, like many others in the academic circles and the government, he was still trying to explain the memo and its consequences, saying that the researchers were suffering from “great discomfort along with deep interest in obtaining a greater vision about what is already happening.”
Reports previously contributed Glen Thushand Maggie Habermanand Amy Shunfield Walkerand David a. Fahrenold and Alan Plonder.