Trump Administration Freezes Federal Aid, Pausing Trillions in Grants and Loans Starting Tomorrow

Jan 28, 2025, 03:01 AM

The Trump administration has ordered a temporary pause on all federal grants, loans, and financial assistance programs, potentially putting trillions of dollars on hold, according to internal memos sent to agencies on Monday. The White House Office of Management and Budget acting director Matthew Vaeth issued the directive, which will take effect tomorrow at 5 p.m. Eastern Time. The move could halt payments within days to states and U.S. households that receive assistance such as SNAP food aid, disaster aid, and research funding, creating confusion across Washington. Federal agencies, including the Department of Health and Human Services—the largest grantmaking agency—have been instructed to provide lists of funds to be paused as the administration seeks to review these programs. The pause gives power to political appointees within the agencies, and the implications could be sweeping.