White House pauses all federal grants, sparking confusion

[Efilroft Sul]

Source: Washington Post

The White House budget office is ordering a pause to all grants and loans disbursed by the federal government, according to an internal memo sent to agencies Monday, creating significant confusion across Washington.

In a two-page document, Matthew J. Vaeth, the acting director of the White House Office of Management and Budget, instructs federal agencies to “temporarily pause all activities related to obligations or disbursement of all Federal financial assistance.” The memo, a copy of which was obtained by The Washington Post, also calls for each agency to perform a “comprehensive analysis” to ensure its grant and loan programs are consistent with President Donald Trump’s executive orders, which aimed to ban federal diversity, equity and inclusion initiatives, and limit clean energy spending, among other measures.

The memo states its orders should not be “construed” to impact Social Security or Medicare recipients, and also says the federal financial assistance put on hold “does not include assistance provided directly to individuals.”

Read more: https://www.washingtonpost.com/business/2025/01/27/white-house-pauses-federal-grants/?utm_source=alert&utm_medium=email&utm_campaign=wp_news_alert_revere&location=alert

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Stay tuned.

[choie]

1. Yeah, we don't want the corporate "individuals"

who suck at the teat of the government to be concerned.

[iemanja]

2. This is terrible

Research universities are going to have a hard time.

[LisaL]

3. For sure.

Federal grants pay for a lot of jobs at Universities.

[iemanja]

4. including mine!

It's also going to be terrible for students everywhere. All loans are frozen as well. It goes beyond universities, of course.

[LisaL]

5. Students, professors, etc.

Federal grants pay a lot of salaries. Most Universities only pay for part of professors' salaries, federal grants pay the rest. A lot of the personnel are completely paid from grants.

[Blues Heron]

6. the coup unfolds apace

[Efilroft Sul]

7. Interestingly enough, my freshman son in college had all of tomorrow's classes canceled.

He got this heads-up on Friday, and this cancelation was not part of his semester calendar. He's not sure why classes were canceled, but maybe his school saw something like this coming. I hope to know more tomorrow.

[iemanja]

8. I haven't heard of classes being cancelled

I work at an R1 University.

[Efilroft Sul]

9. My kid attends a non-R1 state school.

Now again, classes being canceled tomorrow could be for a different reason entirely. But I'll bet this story will be top of mind with faculty even if the meeting is for another reason.

[question everything]

10. Including all research grants?

What are scientists supposed to do? Stop in mid experiment?

What about infrastructure grants?

When will people realize how megalomaniac he is? Running a country like a personal empire?

[mahatmakanejeeves]

11. Trump administration orders sweeping freeze of federal aid

WHITE HOUSE
Trump administration orders sweeping freeze of federal aid

In a two-page memo, the Office of Management and Budget ordered all federal agencies to temporarily suspend payments.

{snip picture of Trump}

President Donald Trump speaks to reporters aboard Air Force One en route from Miami to Joint Base Andrews, Maryland, Jan. 27. | Mark Schiefelbein/AP

By JENNIFER SCHOLTES and NICHOLAS WU
01/27/2025 09:36 PM EST
Updated: 01/27/2025 11:07 PM EST
One week in, the Trump administration is broadening its assault on the functions of government and shifting control of the federal purse strings further away from members of Congress.

President Donald Trump’s budget office Monday ordered a total freeze on “all federal financial assistance” that could be targeted under his previous executive orders pausing funding for a wide range of priorities — from domestic infrastructure and energy projects to diversity-related programs and foreign aid.

In a two-page memo obtained by POLITICO, the Office of Management and Budget announced all federal agencies would be forced to suspend payments — with the exception of Social Security and Medicare.
“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,” according to the memo, which three people authenticated.

{snip}

[Johnny2X2X]

12. No one is stopping him

He does not have the power to do this, it's COngress who controls the power of the purse strings. But no one is calling it out as abuse of power, and there are no lawsuits yet. Totally out of control and the GOP Congress has ceded him their authority.

[samnsara]

15. yeah but he has the house and they pay the bills

[Deminpenn]

13. This is a trial run

Incoming, presumably, OMB head Russell Vought believes the president can withhold spending even as legally directed by Congress. If there's no big pushback, then he will tell Trump to stop all spending on anything of which Trump/his handlers don't approve.

[Efilroft Sul]

14. Congress had better push back (which I don't expect, sadly)

Otherwise, Trump's going to take a Sharpie to Article I so that its title reads, "Also Artickle Too".

[Fla Dem]

16. This is out and out anti American

The memo, a copy of which was obtained by The Washington Post, also calls for each agency to perform a “comprehensive analysis” to ensure its grant and loan programs are consistent with President Donald Trump’s executive orders, which aimed to ban federal diversity, equity and inclusion initiatives, and limit clean energy spending, among other measures.

Limit clean energy spending. Sure we all want to live in a polluted air environment, and a segregated society, where if you aren't White then FU.