The White House has reportedly issued a memo that broadly suspends federal grants, loans and other financial assistance programs for executive departments pending an assessment of the funding.
The Wall Street Journal first reported the memo, saying it was sent out by the Office of Management and Budget around 5 p.m. on Monday.
The memo, which takes effect Tuesday at 5 p.m., said agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the Green New Deal,” according to the Journal.
The memo reportedly said the federal government spent more than $3 trillion on federal assistance, including grants and loans, in the 2024 fiscal year and that the pause allows “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.”
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Each agency must “complete a comprehensive analysis of all their Federal financial assistance programs to identify programs, projects and activities that may be implicated by any of the President’s executive orders,” the memo continued, according to the Journal, adding that the pause must be applied “to the extent permissible under applicable law.”
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Senate Minority Leader Chuck Schumer, D-N.Y., condemned the memo, telling the Journal that pausing the funding puts “billions upon billions of community grants and financial support that help millions of people across the country” at risk.
“It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities, state disaster assistance, local law enforcement, aid to the elderly, and food for those in need,” Schumer said, adding that Congress approved the funding for the federal assistance programs.
The memo included a footnote that said Medicare, Social Security benefits and assistance provided directly to individuals were exempt from the pause, but its otherwise broad language caused confusion Monday night among some federal employees, as administrators requested advice from their internal counsel regarding which programs the pause applied to and how the departments should respond, one source told the Journal.
The memo included a Feb. 10 deadline for agencies to submit a thorough summary of all paused programs, projects and activities to the Office of Management and Budget.
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