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Trump Administration Pauses Federal Funding, Citing 'Wokeness' and Policy Priorities

Critics warn of chaos for universities, charities, and public programs.

In a controversial move that could impact countless programs nationwide, the Trump administration has temporarily halted the disbursement of all federal grants and loans, according to an internal memorandum issued on Monday (Jan. 27) by the White House Office of Management and Budget (OMB).

Federal agencies are instructed to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” OMB acting director Matthew Vaeth said in the memo, obtained by CNN. This effectively halts new grants and loans. 

Vaeth described the pause as necessary for the administration to “review agency programs and determine the best uses of the funding…consistent with the law and the President’s priorities.”

The freeze, which goes into effect Tuesday (Jan 28) at 5 p.m., will not affect Social Security or Medicare benefits, nor does it include “assistance provided directly to individuals.”

However, programs related to foreign aid, nongovernmental organizations, diversity initiatives, gender equity, and climate policies—dubbed “woke gender ideology” and “green new deal social engineering” by the memo—are among those potentially impacted.

Lawmakers have already begun to push back, criticizing the administration’s actions as overreach. 

Sen. Patty Murray (D-WA) and Rep. Rosa DeLauro (D-CT), top Democratic members of their respective Appropriations Committees, expressed “extreme alarm” in a letter to the White House. 

RELATED: Trump Ends Federal Diversity Programs, Targets DEI in Bold Executive Order

“The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country,” they wrote.

Senate Minority Leader Chuck Schumer (D-NY) also condemned the move, arguing that it jeopardizes “billions upon billions of community grants and financial support that help millions of people across the country.” 

He warned of potential “chaos” for institutions like universities and non-profits, adding, “Congress approved these investments, and they are not optional; they are the law.”

The OMB memo allows for exceptions on a case-by-case basis and requires agencies to submit detailed information on affected programs by February 10. For now, the pause signals another significant effort by the Trump administration to realign federal spending with its policy agenda.

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