WASHINGTON (AP) – The White House is pausing federal grants and loans starting on Tuesday as President Donald Trump’s administration begins an across-the-board ideological review of its spending.
The decision by the Republican administration could affect trillions of dollars and cause widespread disruption in health care research, education programs and other initiatives. Even grants that have been awarded but not spent are supposed to be halted.
“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” said a memo from Matthew Vaeth, the acting director of the Office of Management and Budget.
The pause takes effect at 5 p.m. ET, and it’s unclear from the memo how sweeping it will be. Vaeth said that all spending must comply with Trump’s executive orders, which are intended to undo progressive steps on transgender rights, environmental justice and diversity, equity and inclusion, or DEI, efforts.
Vaeth wrote that “each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President´s executive orders.”
Medicare and Social Security benefits will be unaffected, according to the memo.
Sen. Patty Murray and Rep. Rose DeLauro, the top Democrats on the Senate and House appropriations committees, expressed “extreme alarm” in a letter to Vaeth.
“This Administration´s actions will have far-reaching consequences for nearly all federal programs and activities, putting the financial security of our families, our national security, and the success of our country at risk,” they wrote.
