Trump Halts Federal Grants and Loans to Review DEI and Green New Deal Funding

Jan 28, 2025, 02:08 PM

The Trump administration has ordered a temporary pause on all federal grants and loans, according to an internal memorandum from the White House Office of Management and Budget (OMB) sent on Monday. Acting OMB Director Matthew Vaeth directed federal agencies to halt the disbursement of financial assistance programs, effective 5:00 PM EST Tuesday, as the government conducts a review to ensure spending aligns with President Donald Trump's agenda. The freeze aims to scrutinize funding related to diversity, equity, and inclusion (DEI), "woke" gender ideology, and the Green New Deal. This decision has created significant confusion across Washington and could impact trillions of dollars in government spending, potentially halting payments to states and U.S. households that receive assistance through programs such as SNAP food aid. Social Security and Medicare are exempt from this pause. The move has prompted criticism from congressional Democrats, who argue that the action could disrupt essential services, including health care research, education programs, housing assistance, and disaster relief efforts.