White House Freezes All Federal Grants and Loans

The White House is ordering a pause to all federal grants and loans pending a review by the Trump administration.

Key Details: In a memo from the Office of Management and Budget (OMB), agencies have until February 10 to submit detailed information on any projects, activities, or programs subject to the pause. It does not include assistance provided directly to individuals, such as Social Security or Medicare. In addition, the memo orders federal agencies to assign "responsibility and oversight" of tracking federal spending to a senior political appointee, not a career official.

Key Quote: The OMB memo says that "to the extent permissible under applicable law, Federal agencies must temporarily pause [bold in original] all activities related to obligation or disbursement of all Federal financial assistance, and 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."

For Context: The freeze is an effort to ensure that grant and loan programs are consistent with executive orders signed by President Donald Trump, some of which ban federal diversity, equity, and inclusion (DEI) initiatives and limit green energy spending. On January 21, OMB had directed all federal DEI employees to be placed on leave. According to budget experts, a president is legally allowed to defer spending for a period of time if it is made clear which budget accounts are frozen.

How the Media Covered it: Sources across the political spectrum suggested the move has created confusion in Washington about how to navigate the pause, which could impact at least tens of billions of dollars in payments.