White House Orders Temporary Pause on Federal Loans and Grants

President Donald Trump on Tuesday ordered a temporary pause on all federal grants and loans.

The order will halt federal agencies from financial assistance in matters such as foreign aid, non-governmental organizations, and DEI programs. It will not affect individuals receiving aid in cases such as Medicare and Social Security. 

“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,” said Matthew Vaeth, director of the Office of Management and Budget, in a memo.

Vaeth said the use of taxpayer money for progressive purposes such as environmental and “gender-equality” policies “is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”

It is unclear whether the order will affect food stamps, Medicaid, or disaster assistance programs. 

The pause will take effect Wednesday at 5 p.m. ET.