The White House has initiated a temporary pause on federal grants, loans, and other government assistance programs, according to an internal Office of Management and Budget (OMB) memo obtained and verified by CBS News.
Acting OMB Director Matthew Vaeth instructed federal agencies to review their financial assistance programs to ensure alignment with current administration priorities. The directive requires agencies to suspend both new awards and disbursements under existing programs, with notable exceptions for Medicaid and Social Security benefits.
The memo specifically addresses funding related to foreign aid, nongovernmental organizations, diversity initiatives, gender programs, and environmental projects. Agencies must report their paused programs by February 10, with an immediate deadline of 5:00 PM EST for implementing the suspension.
Congressional Democratic leaders, including Senator Patty Murray and Representative Rosa DeLauro, responded with a letter expressing “extreme alarm” about the directive’s scope. Senate Minority Leader Chuck Schumer warned of potential disruptions to payrolls, rent payments, and operations of universities and charitable organizations.
The National Council of Nonprofits raised concerns about the pause’s impact on essential services, including cancer research, food assistance, and suicide prevention hotlines.
This federal assistance review follows a recent State Department directive halting most foreign assistance, with exceptions for emergency food aid and military funding to Israel and Egypt. The United States, which provided $68 billion in international aid in 2023, had previously ordered a 90-day pause on foreign development assistance.
Legal challenges are anticipated, as the suspended funding was originally allocated by Congress, raising questions about executive authority over congressionally approved spending.
The White House has not yet issued an official response regarding the leaked document.
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