US President Donald Trump has paused federal grants, loans, and other assistance, according to a verified government memo. CBS News confirmed the document, initially leaked to the media. This decision has sparked widespread criticism and raised concerns over potential consequences.
Memo Directs Agencies to Align with Trump’s Priorities
The memo, signed by acting OMB Chief Matthew Vaeth, directs federal agencies to review their spending. It specifically calls for ensuring expenditures align with President Trump’s policy objectives. Agencies must halt issuing new awards and disbursing funds under existing programs until the review concludes. The document outlines impacted areas, including foreign aid, non-governmental organizations, diversity initiatives, and climate-related projects. A deadline of 17:00 EST (22:00 GMT) was set, and agencies must report paused programs by 10 February.
The freeze excludes Medicaid and Social Security benefits, as stated in the memo. However, experts like Diane Yentel of the National Council of Nonprofits warn it could disrupt essential services. Cancer research, food assistance, and suicide hotlines are at risk of losing funding, she said.
Critics Raise Alarm Over Potential Consequences
Democrats have strongly opposed the move, describing it as harmful and unprecedented. Senator Patty Murray and Congresswoman Rosa DeLauro expressed their alarm in a letter to the White House. They urged the administration to respect the Constitution and federal laws, emphasizing the impact on essential services.
Senate Minority Leader Chuck Schumer also criticized the pause, calling it a breach of Congress-approved investments. He warned of missed payrolls, rent payments, and disruptions to universities and nonprofits. “These resources are not optional; they are the law,” Schumer asserted.
Last week, the State Department announced a similar halt to nearly all foreign aid. The move affects development assistance and military aid, sparing only emergency food aid and military funding for Israel and Egypt. Trump previously ordered a 90-day review of foreign aid to ensure alignment with his policies.
The United States, the world’s largest aid donor, spent $68 billion on international assistance in 2023. The new measures have left the future of many programs uncertain. Despite growing criticism, the White House has not yet commented on the memo.
