The Trump administration late Monday directed federal agencies to pause the disbursement of loans and grants while the government conducts a review to ensure spending aligns with President Trump’s agenda.
A memo issued by acting director of the Office of Management and Budget (OMB) Matthew Vaeth directs federal agencies to temporarily pause “all activities related to obligation or disbursement of all Federal financial assistance.”
“This temporary pause will provide the Administration 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,” the memo states.
The memo indicates that Social Security or Medicare benefits should not be impacted, nor should assistance that is provided directly to individuals.
The pause goes into effect at 5 p.m. on Tuesday, according to the memo, which was reviewed by The Hill. OMB may grant exceptions for certain awards on a case-by-case basis, the memo states.
Federal agencies are instructed to conduct a review to determine whether federal loan and grant programs are impacted by Trump’s wave of executive orders during his first week in office. Those orders were related to border security, the federal workforce, ending the “weaponization” of government, the military and other aspects of government.
The White House did not respond to a request for comment on the memo.
Trump and his nominee to lead OMB, Russ Vought, have signaled they may seek to expand presidential authority over the agency. Trump has also talked about challenging the Impoundment Control Act by using presidential authority to hold back certain funding appropriated by Congress.
