Trump In a related internal memo issued on Monday, has directed an end to all federal grants and loans, cutting the White house budget off.
A memorandum issued by acting OMB Director Matthew Vaeth mandates federal agencies temporarily cease activity. Especially, it halts the pertaining to the obligation or disbursement of federal financial assistance.
The issuance of new grants is similarly suspended during the halt. The memo explicitly states, however, that Social Security and Medicare benefits are exempt.
Additionally, it is not intended to affect the distribution of assistance directly made to individuals.
The freeze, which could affect trillions of dollars in funding, is set to take effect at 5 p.m. on Tuesday.
This decision reflects the Trump administration’s efforts to gain control over government spending. It also includes the money that Congress has already allotted.
Purpose of Trump behind aid cut-off
According to Vaeth, the purpose of this halt is to review programs and determine how funding can be in line with administration priorities.
According to him, this suspension conforms with the newly set directives given by President Donald Trump recently.
The memorandum adds that this year freeze affects many agency operations in foreign aid. It also includes non-governmental organizations and diversity, equity, and inclusion initiatives.
It’s also aimed at several programs under Green New Deal that administration thinks don’t align with their intended goals.
According to Vaeth, it is the mandate of the federal appointees to point out a correlation between the spendings and the administration goals.
According to the budget office, exceptions to the freeze can be made on an individual basis.
By February 10, agencies must provide comprehensive reports to OMB about the programs that are impacted.
Democratic senators have criticized the action, calling it “unprecedented”. They have warning of its disastrous effects across the country.
Senate Minority Leader Chuck Schumer said, “The halt puts millions of people’s financial support and vital community.
Funding is at risk, families, colleges, and charitable organizations nationwide are at threat.”
