[White House Budget Office Orders Pause on Federal Grants and Loans
The White House Office of Management and Budget (OMB) has ordered a pause on all federal grants and loans, effective Tuesday at 5 p.m. The pause applies to all federal financial assistance, except for Social Security and Medicare benefits, as well as assistance provided directly to individuals.
According to a memo obtained by CNN, the pause is aimed at reviewing agency programs and determining the best use of funding “consistent with the law and the President’s priorities.” The memo states that the pause will provide the administration with time to examine agency programs and allocate funding “in a manner that is consistent with the law and the President’s priorities.”
The memo notes that the pause does not include financial assistance provided directly to individuals, and suggests that it is in line with President Donald Trump’s executive orders last week.
The pause may impact trillions of dollars and has raised concerns among lawmakers and advocates. Senators Patty Murray and Rosa DeLauro, the top Democratic appropriators in Congress, wrote a letter to the White House on Monday night, expressing their “extreme alarm” with the move and urging the administration to uphold the law and the Constitution.
Senate Minority Leader Chuck Schumer also criticized the pause, saying it will mean “chaos for everything from universities to non-profit charities.” He noted that the action will jeopardize billions of community grants and financial support that help millions of people across the country.
The memo does not specify the length of the pause, but it allows the budget office to grant exceptions for case-by-case basis. Federal agencies are being asked to submit detailed information on any programs, projects, or activities subject to the pause by February 10.
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