President Donald Trump has directed a temporary halt to grants, loans, and other forms of federal financial assistance, according to a leaked government memo verified by News Agencies.
The memo, issued by Acting Office of Management and Budget (OMB) Chief Matthew Vaeth, instructs government agencies to ensure spending aligns with the president’s policy priorities, referencing several executive orders signed by Trump since his return to office.
Key programs such as Medicaid and Social Security benefits are specifically excluded from the pause, but the full scope of its impact remains uncertain. The memo lists categories potentially affected, including funding for foreign aid, nongovernmental organizations, diversity, equity, and inclusion (DEI) initiatives, gender-related policies, and green energy projects associated with the Green New Deal.
The decision comes just days after the administration halted nearly all foreign aid. The move has drawn criticism from Democratic lawmakers, who argue it could undermine critical services and programs. Legal challenges are also expected as opposition groups scrutinize the legality of such sweeping actions.
“This is another attempt to undermine essential programs and prioritize divisive policies over the needs of Americans,” said one Democratic official in response to the pause.
The OMB memo calls for agencies to reassess their financial assistance programs to align with Trump’s stated goals of reducing spending on initiatives he has criticized as inconsistent with his administration’s vision.