Those looking for disbursement from federal grants and loans will be disappointed as the Trump administration has paused any payouts.
According to a report in The Hill, the administration wants to review to make sure it lines up with the administration’s agenda.
Matthew Vaeth, acting director of the Office of Management and Budget (OMB), issued a memo ordering federal agencies to temporarily pause “all activities related to obligation or disbursement of all Federal financial assistance.”
“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,” per the memo.
Social Security or Medicare benefits should not be affected. Assistance that is provided directly to individuals should not be affected either.
According to the memo, the pause starts at 5 p.m. on Tuesday.
OMB may allow exceptions on a case-by-case basis, per the memo.
Federal agencies are to review the grants and loans to see whether they were impacted by the flurry of executive orders signed since retook the Oval Office last week.
Those orders included border security, the federal workforce, ending the “weaponization” of government and the military.
Senate Minority Leader Chuck Schumer (D-N.Y.) was not happy with the directive and said it “blatantly disobeys the law.”
“Congress approved these investments and they are not optional; they are the law. These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities,” Schumer said.
The domino effect of this pause could be dangerous, Schumer said.
“Donald Trump’s Administration is jeopardizing billions upon billions of community grants and financial support that help millions of people across the country,” Schumer added. “It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities.”
Many on X were not pleased either.
