Federal Spending Review Halts Government Assistance Programs
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 […]