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"White House Freezes Federal Assistance Amid Controversy"

"Leaked memo reveals federal grants, loans, and assistance are paused for review, sparking bipartisan backlash."

Source: bbc.co.uk1 min read
"White House Freezes Federal Assistance Amid Controversy"
Image via bbc.co.uk

In brief

"The White House has suspended federal financial assistance and programs in a move that raises legal and operational concerns, as President Trump's administration aims to align spending with his executive priorities."

The White House has paused all federal grants, loans, and assistance, according to a verified leaked government memo. The memo, issued by Matthew Vaeth, acting chief of the Office of Management and Budget (OMB), instructs government agencies to ensure that their spending aligns with the new directives from President Trump. The freeze initiated by the memo does not impact Medicaid or Social Security benefits, but it does encompass assistance for foreign aid, non-governmental organizations, and other areas that the memo labels "woke" or associated with the Green New Deal.A deadline of 5 PM EST has been set for agencies to cease issuing new financial awards and to report back by February 10 on which programs they have put on hold. This decision follows the recent suspension of nearly all foreign aid, further complicating the landscape of U.S. financial assistance abroad. Democrats swiftly condemned the freeze, characterizing it as an unprecedented overreach that could destabilize vital services across the nation. Senator Patty Murray and Congresswoman Rosa DeLauro raised alarms, arguing that the sweeping directive would lead to chaos in universities and nonprofit organizations reliant on federal funding. Senate Minority Leader Chuck Schumer echoed those sentiments, emphasizing that these are legislatively sanctioned investments which shouldn't be postponed.This unexpected halt follows an executive order from Trump calling for a 90-day assessment of foreign development assistance. In 2023, the U.S. has allocated an estimated $68 billion in international aid, making it a significant contributor to global humanitarian efforts. The State Department's earlier memo had restricted foreign aid, affecting various forms of support, with exceptions for emergency food aid and military funding designated for specific countries.

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