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January 28, 2025: Donald Trump presidency news [1]
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Date: 2025-01-28 12:03:39.399000+00:00
The White House budget office has ordered a pause on all federal grants and loans, according to an internal memorandum sent Monday.
What is it?
The freeze means that federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” White House Office of Management and Budget acting director Matthew Vaeth said in the memorandum, a copy of which was obtained by CNN. The pause also blocks the issuance of new grants.
When does it start?
The freeze on federal assistance is slated to take effect at 5 p.m. ET Tuesday.
Who will be affected?
The memo specifies that the pause applies 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,” according to the memo. But it states that it will not affect Social Security or Medicare benefits, nor does it include “assistance provided directly to individuals.”
While individual assistance is not directly targeted by the freeze, the pause will impact aid programs that support people across the United States, according to Senate Minority Leader Chuck Schumer. He said the action jeopardizes “billions upon billions of community grants and financial support that help millions of people across the country.”
Organizations in the dark
Many organizations are scrambling to work out how they’ll be impacted by the freeze.
The primary source of federal funding for senior nutrition programs, like Meals on Wheels, is the Older Americans Act Nutrition Programs, which is a grant. So if the memo applies to this act, “this would presumably halt service to millions of vulnerable seniors who have no other means of purchasing or preparing meals,” Jenny Young, spokesperson for Meals on Wheels America, told CNN Tuesday.
Like many entities that receive funding through federal grants, the organization is trying to figure out what the memo means and who can answer its questions, she noted.
It’s also uncertain whether the Low Income Home Energy Assistance Program will be able to access funds for new applications for heating assistance, said Mark Wolfe, executive director of the National Energy Assistance Directors Association.
“If you are applying today, I don’t know if we can serve you,” he told CNN.
Universities are still working to assess the impact of the freeze on their operations as well.
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[1] Url:
https://www.cnn.com/politics/live-news/trump-presidency-news-federal-grants-01-28-25/index.html
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