President Donald Trump’s administration has enacted a brief suspension of all federal grants and loans, efficient immediately, Tuesday, January 28, 2025.
This strategic pause, orchestrated by the Workplace of Administration and Price range (OMB), is designed to facilitate a complete overview of federal monetary help packages, making certain that taxpayer {dollars} are utilized effectively and in accordance with the administration’s goals.
This initiative displays President Trump’s unwavering dedication to fiscal accountability and his dedication to eliminating wasteful spending.
By reassessing monetary help packages, the administration goals to redirect sources towards endeavors that bolster nationwide safety, stimulate financial development, and uphold American values.
In a two-page memo, the directive particularly targets packages related to variety, fairness, and inclusion (DEI) initiatives, woke gender ideology, and the Inexperienced New Deal.
Whereas the suspension is complete, it doesn’t have an effect on Social Safety, Medicare, or different packages that present direct help to people.
Federal businesses have been instructed to establish and overview all monetary help packages and report again to the OMB by February 10, detailing any packages topic to the pause and figuring out any legally mandated actions or deadlines.
Learn the memo beneath:
“The American folks elected Donald J. Trump to be President of the US and gave him a mandate to extend the influence of each federal taxpayer greenback. In Fiscal 12 months 2024, of the practically $10 trillion that the Federal Authorities spent, greater than $3 trillion was Federal monetary help, equivalent to grants and loans.
Profession and political appointees within the Government Department have an obligation to align Federal spending and motion with the desire of the American folks as expressed via Presidential priorities.
Monetary help ought to be devoted to advancing Administration priorities, focusing taxpayer {dollars} to advance a stronger and safer America, eliminating the monetary burden of inflation for residents, unleashing American vitality and manufacturing, ending “wokeness” and the weaponization of presidency, selling effectivity in authorities, and Making America Wholesome Once more.
Using Federal sources to advance Marxist fairness, transgenderism, and inexperienced new deal social engineering insurance policies is a waste of taxpayer {dollars} that doesn’t enhance the day-to-day lives of these we serve.
This memorandum requires Federal businesses to establish and overview all Federal monetary help’ packages and supporting actions per the President’s insurance policies and necessities?
For instance, throughout the preliminary days of his Administration, President Donald J. Trump issued a sequence of government orders to guard the American folks and safeguard worthwhile taxpayer sources, together with Defending the American Individuals Towards Invasion (Jan. 20, 2025), Reevaluating and Realigning United States International Support (Jan. 20, 2025), Placing America First in Worldwide Environmental Agreements (Jan. 20, 2025), Unleashing American Power (Jan. 20,
2025), Ending Radical and Wasteful Authorities DEI Applications and Preferencing (Jan. 20, 2025), Defending Girls from Gender Ideology Extremism and Restoring Organic Reality to the Federal Authorities (Jan. 20, 2025), and Imposing the Hyde Modification (Jan. 24, 2025).
These government orders be sure that Federal funds are used to assist hardworking American households.
To implement these orders, every company should full a complete evaluation of all of their Federal monetary help packages to establish packages, initiatives, and actions which may be implicated by any of the President’s government orders.
Within the interim, to the extent permissible underneath relevant legislation, Federal businesses should quickly pause all actions associated to obligation or disbursement of all Federal monetary help, and different related company actions which may be implicated by the manager orders, together with, however not restricted to, monetary help for overseas help, nongovernmental organizations, DEI, woke gender ideology, and the inexperienced new deal.
This short-term pause will present the Administration time to overview company packages and decide one of the best makes use of of the funding for these packages per the legislation and the President’s priorities. The short-term pause will change into efficient on January 28, 2025, at 5:00 PM.
Even earlier than finishing their complete evaluation, Federal businesses should instantly establish any legally mandated actions or deadlines for help packages arising whereas the pause stays in impact. Federal businesses should report this data to OMB together with an evaluation of the requirement. OMB additionally directs Federal businesses to pause all actions related to open NOFOs, equivalent to conducting benefit overview panels.
No later than February 10, 2025, businesses shall undergo OMB detailed data on any packages, initiatives or actions topic to this pause. Every company should pause: (i) issuance of latest awards; (ii) disbursement of Federal funds underneath all open awards; and iii) different related company actions which may be implicated by the manager orders, to the extent permissible by legislation, till OMB has reviewed and offered steering to your company with respect to the data submitted.
OMB might grant exceptions permitting Federal businesses to concern new awards or take different actions on a case-by-case foundation. To the extent required by legislation, Federal businesses might proceed taking sure administrative actions, equivalent to closeout of Federal awards (2 CFR 200.344), or recording obligations expressly required by legislation.
Moreover, businesses should, for every Federal monetary help program: (i) assign accountability and oversight to a senior political appointee to make sure Federal monetary help conforms to Administration priorities; ii) overview presently pending Federal monetary help bulletins to make sure Administration priorities are addressed, and, topic to program statutory authority, modify unpublished Federal monetary help bulletins, withdraw any bulletins already revealed, and, to the extent permissible by legislation, cancel awards already awarded which might be in battle with Administration priorities, and; (iii) guarantee sufficient oversight of Federal monetary help packages and provoke investigations when warranted to establish underperforming recipients, and deal with recognized points as much as and together with cancellation of awards.”
TRILLION-DOLLAR FREEZE: TRUMP HITS PAUSE ON ALL FEDERAL FUNDING
In a sweeping transfer, the White Home simply ordered each federal company to cease all grants and loans – efficient tomorrow at 5pm.
White Home Workplace of Administration and Price range appearing director Matthew Vaeth:… pic.twitter.com/OybR7x4mLI
— Mario Nawfal (@MarioNawfal) January 28, 2025
