The White House is pausing federal grants and loans starting on Tuesday as President Donald Trump’s administration begins an across-the-board ideological review of its spending.
Here's the latest:
Immigrant and refugee advocates were cut off even before Monday’s funding pause
Last week, the Justice Department halted contracts to provide legal information to people facing deportation in immigration court. Government-funded nonprofit groups were told in an email “to stop work immediately” on helping people navigate the system’s complex laws and procedures.
“We often hear that people don’t know what’s happening. Why are they detained? What’s going to happen next? And we are being stopped from even giving that basic level of orientation,” said Michael Lukens, executive director of Amica Center for Immigrant Rights.
The State Department told groups that give temporary housing and job training to resettled refugees to stop work immediately on government-funded efforts. Global Refuge said it affected 5,870 refugees under its watch.
“Recently arrived refugees who fled unimaginable danger and lawfully came to the U.S. rely on the initial assistance of Global Refuge to help them navigate life in America,” Krish O’Mara Vignarajah, the group’s president, wrote in a fund-raising pitch Monday.
State official awaiting guidance on effect of memo pausing federal loans and grants
In Kansas, state Transportation Secretary Calvin Reed said he learned of the Trump administration’s move Monday night and that the agency is still reviewing it and awaiting more guidance from federal officials.
Federal funds are a key source of money for highway and bridge projects, and the department expects to receive $664 million in federal funds during the 12 months beginning July 1, almost 40% of its annual budget of nearly $1.7 billion.
“We think it’s a low risk for our typical everyday highway projects,” he said Tuesday, before briefing a legislative committee on his department’s operations. “The target seems to be some of the initiatives that the Trump administration has said publicly that they want to change, things like DEI, electric vehicle infrastructure.”
Democrats and independent organizations criticize the administration for federal grant pause
They described the administration’s actions as capricious and illegal because Congress had already authorized the funding.
“Congress approved these investments and they are not optional; they are the law,” New York Democratic Sen. Chuck Schumer, the Senate minority leader, said in a statement. “It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities.”
Medicare and Social Security benefits won't be affected by the pause in federal grants and loans
That’s according to the memo on the pause from Matthew Vaeth, the acting director of the Office of Management and Budget.
But there was no explanation of whether the pause would affect Medicaid, food stamps, disaster assistance and other programs. The memo said it should be implemented “to the extent permissible under applicable law.”
Trump is pausing federal loans and grants as his administration reviews spending
The decision by the Republican administration could affect trillions of dollars and cause widespread disruption in health care research, education programs and other initiatives. Even grants that have been awarded but not spent are supposed to be halted.
“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,” said a memo from Matthew Vaeth, the acting director of the Office of Management and Budget.
The pause takes effect Tuesday at 5 p.m. ET, and it’s unclear from the memo how sweeping it will be. Vaeth said all spending must comply with Trump’s executive orders, which are intended to undo progressive steps on transgender rights, environmental justice and diversity, equity and inclusion, or DEI, efforts.
