The White House Budget Office ordered the suspension of all federal grants and loans, as outlined in an internal memo. About this informs CNN.
A memorandum from Acting Director of the White House Office of Budget and Management Matthew Waite said that federal agencies should temporarily stop any obligations or payments related to the provision of financial assistance. The pause also blocks the issuance of new grants.
“This temporary pause will give the administration time to review agency programs and determine the best ways to use funding for these programs in accordance with the law and the president’s priorities.” Waite explained.
At the same time, the document states that this limitation does not apply to payments under the Social Security and Medicare programs, nor does it cover assistance provided directly to individuals.
The freeze will take effect on January 28 and could affect trillions of dollars in funding. The move is another initiative by the Trump administration aimed at controlling federal finances, including those already approved by Congress.
