President Donald Trump’s administration has enacted a temporary suspension of all federal grants and loans, effective today, Tuesday, January 28, 2025.
This strategic pause, orchestrated by the Office of Management and Budget (OMB), is designed to facilitate a comprehensive review of federal financial assistance programs, ensuring that taxpayer dollars are utilized efficiently and in accordance with the administration’s objectives.
This initiative reflects President Trump’s unwavering commitment to fiscal responsibility and his dedication to eliminating wasteful spending.
By reassessing financial assistance programs, the administration aims to redirect resources toward endeavors that bolster national security, stimulate economic growth, and uphold American values.
In a two-page memo, the directive specifically targets programs associated with diversity, equity, and inclusion (DEI) initiatives, woke gender ideology, and the Green New Deal.
While the suspension is comprehensive, it does not affect Social Security, Medicare, or other programs that provide direct assistance to individuals.
Federal agencies have been instructed to identify and review all financial assistance programs and report back to the OMB by February 10, detailing any programs subject to the pause and identifying any legally mandated actions or deadlines.
Read the memo below:
“The American people elected Donald J. Trump to be President of the United States and gave him a mandate to increase the impact of every federal taxpayer dollar. In Fiscal Year 2024, of the nearly $10 trillion that the Federal Government spent, more than $3 trillion was Federal financial assistance, such as grants and loans.
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.
Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending “wokeness” and the weaponization of government, promoting efficiency in government, and Making America Healthy Again.
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.
This memorandum requires Federal agencies to identify and review all Federal financial assistance’ programs and supporting activities consistent with the President’s policies and requirements?
For example, during the initial days of his Administration, President Donald J. Trump issued a series of executive orders to protect the American people and safeguard valuable taxpayer resources, including Protecting the American People Against Invasion (Jan. 20, 2025), Reevaluating and Realigning United States Foreign Aid (Jan. 20, 2025), Putting America First in International Environmental Agreements (Jan. 20, 2025), Unleashing American Energy (Jan. 20,
2025), Ending Radical and Wasteful Government DEI Programs and Preferencing (Jan. 20, 2025), Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government (Jan. 20, 2025), and Enforcing the Hyde Amendment (Jan. 24, 2025).
These executive orders ensure that Federal funds are used to support hardworking American families.
To implement these orders, each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders.
In the interim, to the extent permissible under applicable law, 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.
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 temporary pause will become effective on January 28, 2025, at 5:00 PM.
Even before completing their comprehensive analysis, Federal agencies must immediately identify any legally mandated actions or deadlines for assistance programs arising while the pause remains in effect. Federal agencies must report this information to OMB along with an analysis of the requirement. OMB also directs Federal agencies to pause all activities associated with open NOFOs, such as conducting merit review panels.
No later than February 10, 2025, agencies shall submit to OMB detailed information on any programs, projects or activities subject to this pause. Each agency must pause: (i) issuance of new awards; (ii) disbursement of Federal funds under all open awards; and iii) other relevant agency actions that may be implicated by the executive orders, to the extent permissible by law, until OMB has reviewed and provided guidance to your agency with respect to the information submitted.
OMB may grant exceptions allowing Federal agencies to issue new awards or take other actions on a case-by-case basis. To the extent required by law, Federal agencies may continue taking certain administrative actions, such as closeout of Federal awards (2 CFR 200.344), or recording obligations expressly required by law.
Additionally, agencies must, for each Federal financial assistance program: (i) assign responsibility and oversight to a senior political appointee to ensure Federal financial assistance conforms to Administration priorities; ii) review currently pending Federal financial assistance announcements to ensure Administration priorities are addressed, and, subject to program statutory authority, modify unpublished Federal financial assistance announcements, withdraw any announcements already published, and, to the extent permissible by law, cancel awards already awarded that are in conflict with Administration priorities, and; (iii) ensure adequate oversight of Federal financial assistance programs and initiate investigations when warranted to identify underperforming recipients, and address identified issues up to and including cancellation of awards.”
TRILLION-DOLLAR FREEZE: TRUMP HITS PAUSE ON ALL FEDERAL FUNDING
In a sweeping move, the White House just ordered every federal agency to stop all grants and loans – effective tomorrow at 5pm.
White House Office of Management and Budget acting director Matthew Vaeth:… pic.twitter.com/OybR7x4mLI
— Mario Nawfal (@MarioNawfal) January 28, 2025
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