Written by Lisa Murimi
President Donald Trump has ordered a temporary halt on grants, loans, and federal assistance, according to a leaked memo verified by CBS News.Â
The pause, issued by acting Office of Management and Budget (OMB) chief Matthew Vaeth, directs government agencies to review spending for alignment with Trump’s executive orders.
The freeze excludes Medicaid and Social Security but affects foreign aid, non-governmental organizations, and programs related to environmental initiatives and diversity efforts.
Agencies have until February 10 to report on affected programs.
Democratic leaders have criticized the move, warning of significant disruptions. Senate Minority Leader Chuck Schumer called the order “chaotic,” noting it would impact payrolls, universities, and charities. “These investments are not optional; they are the law,” he asserted.
Washington Senator Patty Murray and Congresswoman Rosa DeLauro expressed “extreme alarm” in a letter to the White House, urging adherence to legal requirements.
The decision follows last week’s halt on nearly all foreign aid, including development assistance and military funding, with exceptions for Israel, Egypt, and emergency food aid.
As the world’s largest donor of international aid, the US spent $68 billion in 2023. Critics fear the pause will have far-reaching consequences at home and abroad. The White House has yet to comment.
