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WASHINGTON — The White House is halting federal grants and loans starting Tuesday as part of a broader ideological review of federal spending led by President Donald Trump’s administration.
The freeze, which could impact trillions of dollars in funding, is expected to disrupt a wide range of programs, including health care research, education initiatives, and more. Even grants that have already been awarded but not yet spent are expected to be paused.
“The use of federal resources to advance Marxist equity, transgenderism, and Green New Deal social engineering policies is a misuse of taxpayer dollars that does not improve the lives of everyday Americans,” said a memo from Matthew Vaeth, acting director of the Office of Management and Budget (OMB).
The funding pause is set to begin at 5 p.m. ET, but the scope of the freeze remains unclear. Vaeth emphasized that all federal spending must now comply with Trump’s executive orders, which target progressive policies on transgender rights, environmental justice, and diversity, equity, and inclusion (DEI) initiatives.
According to the memo, “Each agency must conduct a comprehensive analysis of all their financial assistance programs to identify those that may be affected by the President’s executive orders.”
Washington is a major hub of federal funding, which flows to various departments, state and local governments, nonprofits, and contractors. The memo has left many recipients of federal funds uncertain about how the freeze will impact them.
This move is the latest example of Trump using his power over the federal system to push forward his conservative agenda. Unlike his first term, when Trump and many of his closest advisors were less familiar with Washington’s inner workings, the current administration is taking a more systematic approach to implementing its goals.
“They are pushing the president’s agenda from the bottom up,” said Paul Light, a federal government expert and professor emeritus of public service at New York University.
Light also cautioned about the potential risks of this approach, especially given how many voters rely on federal programs.
“You can’t just hassle, hassle, hassle. You’ve got to deliver,” he added.
According to the memo, Medicare and Social Security benefits will be unaffected by the pause. However, it’s unclear whether Medicaid, food stamps, disaster relief, and other programs will be impacted. The memo notes the freeze will be enforced “to the extent permissible under applicable law.”
“Are you stopping NIH cancer trials?” Sen. Amy Klobuchar, a Democrat from Minnesota, questioned on social media, referring to the National Institutes of Health.
A briefing with White House Press Secretary Karoline Leavitt, scheduled for 1 p.m. ET, is expected to provide further details.
Sen. Patty Murray of Washington and Rep. Rosa DeLauro of Connecticut, the leading Democrats on the Senate and House Appropriations Committees, expressed “extreme alarm” over the pause in a letter to Vaeth.
“This administration’s actions will have far-reaching consequences for nearly all federal programs and activities, jeopardizing the financial security of families, national security, and the success of our country,” they wrote.