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Tuesday, January 28, 2025

Federal grants paused

 

The White House has indeed paused all federal grants and loans. This decision, driven by President Donald Trump's administration, aims to ensure that all federal spending aligns with his recently signed executive orders. The pause affects a wide range of programs, including public education, health care research, and infrastructure. However, Social Security and Medicare benefits are not impacted. The pause is set to continue until at least mid-February, with agencies required to provide detailed reports on affected programs by February 10.




The White House has ordered a temporary pause on all federal grants and loans starting January 28, 2025. This pause is part of an effort to review and align federal spending with President Donald Trump's executive orders. The Office of Management and Budget (OMB) has directed federal agencies to halt activities related to the disbursement of federal financial assistance, including grants and loans. The pause affects a wide range of programs, such as health care research, public education, infrastructure projects, and foreign aid. However, Social Security and Medicare benefits are not impacted. Agencies have until February 10, 2025, to submit detailed reports on the programs affected by the pause. The administration aims to ensure that federal spending aligns with Trump's priorities, which include dismantling programs related to diversity, equity and inclusion (DEI), transgender rights, and environmental justice. The pause is intended to provide time for a comprehensive review of agency programs and determine the best uses of funding consistent with the law and Trump's policies.


The pause on federal grants and loans is part of a broader effort by the Trump administration to review and realign federal spending with President Trump's priorities. The Office of Management and Budget (OMB) has directed federal agencies to halt all activities related to the disbursement of federal financial assistance, including grants and loans. This includes programs related to diversity, equity, and inclusion (DEI),transgender rights, and environmental justice. The pause is set to take effect on January 28, 2025, at 5 p.m. Eastern Time (2200 GMT), and will last until February 10, 2025. During this period, agencies are required to submit detailed reports on the programs affected by the pause. The administration aims to ensure that federal spending aligns with Trump's policies and priorities. The pause could impact a wide range of programs, including Medicaid, school breakfast and lunch programs, rental assistance, education grants, and more. However, Social Security and Medicare benefits are not affected. The administration has stated that the pause is necessary to review agency programs and determine the best uses of funding consistent with the law and Trump's policies. Critics argue that the move could cause widespread disruption and uncertainty for programs and individuals who rely on federal funding.


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