Trump administration directs widespread pause of federal loans and grants

The Trump administration late Monday directed federal agencies to pause the disbursement of loans and grants while the government conducts a review to ensure spending aligns with President Trump’s agenda.

A memo issued by acting director of the Office of Management and Budget (OMB) Matthew Vaeth directs federal agencies to temporarily pause “all activities related to obligation or disbursement of all Federal financial assistance.”

“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,” the memo states.

The memo indicates that Social Security or Medicare benefits should not be impacted, nor should assistance that is provided directly to individuals.

The pause goes into effect at 5 p.m. on Tuesday, according to the memo, which was reviewed by The Hill. OMB may grant exceptions for certain awards on a case-by-case basis, the memo states.