By Mallory Wilson and Jeff Mordock The Washington Times Monday, January 27, 2025
President Trump’s budget office has ordered all federal agencies to temporarily pause the disbursement of “all federal financial assistance” besides Social Security and Medicare.
The order could disrupt tens of billions of dollars in payments for domestic infrastructure projects, climate initiatives, foreign aid and diversity education that is disbursed to states and local governments.
The move creates confusion in Washington and the states as officials scramble to figure out how to navigate the pause.
A two-page memo from Matthew J. Vaeth, acting director of the Office of Management and Budget, said the temporary freeze will go into effect starting on Tuesday at 5 p.m. It does not detail how the funding will be paused.
“Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, promoting efficiency in government, and Making America Healthy Again,” the memo said.
“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” it said.
It said federal agencies are required to “identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements.”
Each agency must complete an analysis of their federal assistance programs to identify any and all that “may be implicated by any” of Mr. Trump’s executive orders, including “financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
The memo also says agencies must assign a “senior political appointee to ensure Federal financial assistance conforms to Administration priorities,” review and make appropriate changes to any announcements, “cancel awards already awarded that are in conflict with Administrative priorities” and make sure oversight is being conducted of programs and “underperforming recipients.”
The reports are due by Feb. 10.
The memo says the pause will give the Trump administration time to examine the programs and decide whether the funding for those programs is “consistent with the law and the President’s priorities.”
Senate Minority Leader Charles E. Schumer, New York Democrat, blasted the announcement in a statement, saying he doesn’t believe the Trump administration’s claims the pause is only temporary.
“Donald Trump must direct his administration to reverse course immediately and the taxpayers’ money should be distributed to the people. Congress approved these investments and they are not optional. They are the law,” Mr. Schumer said.
