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An internal memorandum from the White House budget office has directed federal agencies to halt all activities related to the obligation or disbursement of federal financial assistance. This pause, which also includes the issuance of new grants, is set to go into effect at 5 p.m. on Tuesday and could impact trillions of dollars in federal funding.
The memo, signed by the acting director of the White House Office of Management and Budget, states that the temporary pause is intended to allow the administration time to review agency programs and allocate funding in line with the law and the President's priorities. This move aligns with recent executive orders issued by President Donald Trump.
In addition to federal grants and loans, the freeze on financial assistance extends to other agency activities such as foreign aid, nongovernmental organizations, diversity, equity, and inclusion initiatives, gender ideology, and environmental programs like the Green New Deal.
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The memo emphasizes that both career and political appointees in the Executive Branch have a responsibility to align federal spending with the priorities of the American people as expressed through the President's agenda.
While the pause is comprehensive, exceptions may be granted on a case-by-case basis by the budget office, allowing agencies to proceed with new awards or other actions. Federal agencies are required to submit detailed information on any programs, projects, or activities affected by the pause to the Office of Management and Budget by February 10.
This latest directive underscores the Trump administration's efforts to exert control over federal funding and ensure that resources are allocated in accordance with the administration's goals and priorities.