White House Temporarily Freezes All Federal Grants And Loans

WASHINGTON DC, UNITED STATES - JANUARY 22: The White House is seen in Washington D.C., United States on January 22, 2025.
(Photo by Celal Gunes/Anadolu via Getty Images)

The White House has temporarily frozen all federal grants and loans. 

In the memorandum, White House Office of Management and Budget acting director Matthew Vaeth said, “Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.” This freeze also blocks new grants. 

The freeze will not affect Social Security or Medicare benefits and doesn’t include the “assistance provided directly to individuals.” This freeze is set to take place on Tuesday at 5 pm. “This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities,” Vaeth wrote. 

This executive order was signed with the others that Trump signed during his first few days in office. The memo also states, “The pause also applied to other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.” 

Vaeth continued, “Career and political appointees in the Executive Branch have a duty to align Federal spending and action with the will of the American people as expressed through Presidential priorities.” 

He added, “Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, and Making America Healthy Again.” 

“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.”

The memo also states, “The budget office may grant exceptions allowing Federal agencies to issue new awards or take other actions on a case-by-case basis.” 

Democratic Lawmakers Sen. Patty Murray of Washington State and Rep. Rosa DeLauro of Connecticut wrote in a letter to the White House, “The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country.” 

The letter continued, “We write today to urge you in the strongest possible terms to uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law.” 

Chuck Schumer, Senate Minority Leader, also spoke about the federal pause. “Congress approved these investments and they are not optional; they are the law. These grants help people in red states and blue states, support families, and help parents raise kids, and lead to stronger communities.” 

Schumer added, “This action jeopardizes billions upon billions of community grants and financial support that help millions of people across the country.” He continued, “It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities.”