WASHINGTON — President Donald Trump’s administration directed the Office of Management and Budget to temporarily halt the disbursement of grants and loans by federal agencies, with exceptions for programs like Social Security, Medicare and other forms of direct aid to individuals.
The memo states that the temporary pause, effective at 5 p.m. on Jan. 28, is aimed at ensuring agencies comply with Trump’s executive orders to eliminate “Marxist equity, transgenderism and green new deal social engineering policies” from their programs, Roll Call reported.
The specifics on how extensive the pause will be in practice are unclear, given the Office of Management and Budget’s ability to grant exceptions on a case-by-case basis language exempting direct aid to individuals, and a clause indicating that the pause is subject to what is permissible under applicable law.
“Career and political appointees in the Executive Branch have a duty to align Federal spending and action with the will of the American people as expressed through Presidential priorities,” acting OMB Director Matthew Vaeth wrote in the memo. “This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements.”
The memo further specifies that oversight of each federal assistance program will be assigned to “a senior political appointee to ensure that Federal financial assistance aligns with Administrative priorities.”
Reports from each agency detailing all accounts affected by the pause are due to the Office of Management and Budget by Feb. 10.
Agencies have also been directed to retract previously issued award solicitations and “cancel awards already granted that conflict with Administrative priorities,” where law permits, according to the report.
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