President Trump's administration instructed federal assistance agencies to halt the expenditure of all grants and loans besides those that provide direct funding to individuals needing assistance.
The temporary hold on the disbursement of such funds was ordered by the Trump administration's budget office on Monday and will take effect on Tuesday evening. Agencies which this order applies to are expected to root out "Marxist equity, transgenderism, and green new deal social engineering policies" from their programs, reported Roll Call.
The Trump administration clarified that the disbursement of grants and loans for Social Security and Medicaid may continue.
The Office of Management and Budget is permitted to grant exceptions to the order on a case-by-case basis, however which individuals these exceptions apply to is yet to be determined.
"Career and political appointees in the Executive Branch have a duty to align Federal spending and action with the will of the American people as expressed through Presidential priorities," acting OMB director Matthew Vaeth wrote in the memo. "This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President's policies and requirements."
Furthermore, the memo indicates that federal assistance programs will be managed by "a senior political appointee to ensure Federal financial assistance conforms to Administrative priorities."
The halt in the expenditure of funding that the memo calls for accounts for 20% of all federal spending, indicating a massive cessation of government-sanctioned financial assistance. In fact, the memo could impact federal assistance amounting to $3 trillion, though exemptions will impact this figure.
The order will impact many federal assistance programs depended upon by low-income and working-class households, including Medicaid, school lunch programs, nutrition programs for women, infants and children, state grants for child care and assistance for needy households, among others.
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