The White House has implemented a temporary freeze on federal grants and loans as part of an ongoing review of government spending under the Trump administration.
A memo from the Office of Management and Budget (OMB) outlines the suspension of all financial assistance, including grants, loans and other related programmes.
Focus on dismantling DEI and other policies
The freeze comes in response to several executive orders signed by President Trump aimed at dismantling programmes tied to diversity, equity, and inclusion (DEI), as well as other initiatives linked to gender ideology and the Green New Deal.
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Matthew Vaeth, acting director of the OMB, stated that “Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
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He added, "The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve."
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Congressional Democrats demand reversal
The suspension, which took effect at 5 PM EST on January 28, has drawn sharp criticism from congressional Democrats. Senators Patty Murray and Representative Rosa DeLauro have urged the OMB to reverse the decision, calling the scope of the freeze “unprecedented” and warning of its potentially devastating consequences across the country.
(With inputs from agencies)