White House pauses federal grant, loan, other assistance programmes

White House pauses federal grant, loan, other assistance programmes

The suspension gives the new administration time to assess the best uses of funding aligned with its new priorities.

Donald Trump
Donald Trump’s executive orders included efforts to dismantle diversity, equity, and inclusion (DEI) programmes. (EPA Images pic)
WASHINGTON:
The Trump administration has temporarily paused grant, loan and other financial assistance programmes at the office of management and budget, according to a memo seen by Reuters.

It referenced the executive orders, including those seeking to dismantle programmes related to diversity, equity and inclusion (DEI), president Donald Trump has signed since taking office last week.

“In the interim, to the extent permissible under applicable law, federal agencies must temporarily pause all activities related to obligation or disbursement of all federal financial assistance, and other relevant agency activities that may be impacted by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organisations, DEI, woke gender ideology, and the green new deal,” Matthew J Vaeth, the acting director of the office of management and budget, wrote in the memo.

The suspension goes into effect on Jan 28 at 5pm eastern time (2200 GMT), according to the memo.

Agencies have until Feb 10 to submit detailed information on any programmes, projects or activities subject to the pause, the memo states.

The suspension will provide the administration with time to review agency programmes and determine the best uses of funding for those programmes consistent with the law and Trump’s priorities, it added.

Agencies must identify legally mandated actions or deadlines for assistance programmes before completing the analysis, it added.

Vaeth directed federal agencies to halt all activities associated with open notices of funding opportunities.

“This memorandum requires federal agencies to identify and review all federal financial assistance programs and supporting activities consistent with the president’s policies and requirement,” Vaeth wrote.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.