White House pauses all federal grants, loans

ISTANBUL

The White House's Office of Budget and Management has issued an order to temporarily pause all federal grants and loans, according to an internal memorandum sent on Monday.

"In Fiscal Year 2024, of the nearly $10 trillion that the Federal Government spent, more than $3 trillion was Federal financial assistance, such as grants and loans," it said.

"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, promoting efficiency in government, and Making America Healthy Again."

The memorandum clarified that "assistance provided directly to individuals," including Social Security and Medicare benefits, will not be impacted by the suspension.

According to the document, the halt also extends 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."

"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," it added.

The memo said the temporary pause will become effective at 1000GMT on Tuesday.