Trump orders pause on federal grants, loans, according to internal OMB memo

Jan. 28 (UPI) — The Trump administration directed federal agencies to stop distributing loans and grants Tuesday until a review is held to ensure the spending meets Trump’s agenda.

In a memo late Monday viewed by CNN, The Hill, and The Washington Post Matthew Vaeth, the acting director of the Office of Management and Budget ordered the pause to start at 5 p.m., EST.

“This temporary pause will provide the administration time to review agency programs and determine the best use of the funding for those programs consistent with the law and the president’s priorities,” the memo said, according to The Hill.

The memo, however, added that the break would not affect Social Security and Medicare benefits or other assistance given directly to individuals.

The stoppage would apply financial assistance for foreign aid, nongovernmental organizations, “DEI, woke gender ideology, the Green New Deal,” the memo said.

“Career and political appointees in the Executive Branch have a duty to align federal spending and action with the will of the American people as expressed through presidential priorities,” Vaeth said, according to CNN.

Sen. Pat Murray, D-Wash., and Rep. Rosa DeLauro, D-Conn., the leading Democrats on appropriations in the Senate and House, fired off a letter to Trump, saying they viewed the president’s move with “extreme alarm.”

They called the move “breathtaking” and “unprecedented,” and that all federal resources should be delivered by the law. Senate Minority Leader Chuck Schumer weighed in as well.

Senate Minority Leader Chuck Schumer also quickly criticized the pause, calling it unlawful.

“Congress approved these investments, and they are not optional; they are the law,” Schumer said in a message on Facebook. “These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities.”