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Trump Orders Federal Funding Freeze to Align Spending with Conservative Agenda

Jan 28, 2025, 10:17 AM

President Donald Trump's administration has ordered all federal agencies to temporarily pause disbursement of federal grants, loans, and financial assistance programs, according to an internal memo from Office of Management and Budget acting director Matthew Vaeth. The directive, effective Tuesday at 5 PM ET, instructs agencies to halt all funding activities pending a review to ensure alignment with the administration's conservative agenda, including priorities such as limiting spending on diversity, equity, and inclusion initiatives, 'woke' gender ideology, and the Green New Deal. The pause could potentially impact trillions of dollars in payments, affecting a vast range of services across the country, including aid to states, households, foreign aid, non-governmental organizations, and programs like SNAP food assistance. Exempt from the order are Social Security and Medicare payments. The move has prompted criticism from congressional Democrats and raised concerns about disruptions to services such as disaster aid and research funding.