• Federal Grants and Loans Paused by White House: On January 27, 2025, the Office of Management and Budget (OMB) issued a memo mandating a temporary suspension of all federal grants and loans, effective from 5 p.m. on January 28. This decision is part of the Trump administration’s effort to review federal expenditures and align them with the President’s policy objectives. The memo was signed by Matthew Vaeth, acting director of the OMB, and cites the need to halt activities related to the obligation or distribution of federal financial assistance.
• Scope and Impact: The pause affects all forms of federal financial assistance, including grants, loans, and cooperative agreements. It is expected to disrupt numerous programs across various sectors, potentially impacting trillions of dollars in funding. However, Social Security and Medicare benefits will remain unaffected by this suspension.
• Political Reactions: The move has drawn significant criticism from Democratic leaders, including Senator Chuck Schumer and Representatives Patty Murray and Rosa DeLauro. They expressed “extreme alarm” over the potential consequences of this action, which they argue could jeopardize essential services and programs that support millions of Americans.
• Review Process: The memo outlines that federal agencies must conduct a thorough review of their programs to identify which ones may be affected by the executive orders issued by President Trump. Agencies are required to submit detailed information on affected programs by February 10, 2025.

This development marks a significant shift in federal funding policy under the current administration, raising concerns about the future of various public initiatives and services.