The White House Office of Management and Budget (OMB) has ordered a temporary pause on all federal grants and loans, effective Tuesday at 5 p.m. The freeze, directed by acting OMB Director Matthew Vaeth, halts trillions in government spending, impacting public programs and financial assistance across the U.S. While Social Security and Medicare remain unaffected, the pause blocks new grants and disbursements, including foreign aid, NGO funding, and initiatives tied to diversity, equity, and inclusion (DEI) and climate policies.
Vaeth stated the move aligns with President Trump’s executive orders, aiming to redirect federal resources toward administration priorities like energy independence, reducing inflation, and curbing “wokeness.” Critics, including top Democratic lawmakers Sen. Patty Murray and Rep. Rosa DeLauro, condemned the decision as “unprecedented” and “devastating,” warning of widespread disruptions to nonprofits, universities, and communities.
Senate Minority Leader Chuck Schumer emphasized that the freeze jeopardizes legally mandated investments, calling it a threat to millions of Americans reliant on federal support. Exceptions may be granted on a case-by-case basis, but the pause has ignited a fierce debate over executive overreach and fiscal responsibility.
