Silke Mayr US President Donald Trump has paused grants, loans, and federal assistance, per a leaked government memo verified by CBS News. The memo, signed by Acting Office of Management and Budget (OMB) Chief Matthew Vaeth, instructs agencies to align spending with Trump’s priorities.
The full impact remains unclear. However, the memo clarifies that Medicaid and Social Security benefits are unaffected. This pause follows last week’s suspension of nearly all foreign aid by the US.
Legal and Political Pushback
Democratic leaders voiced strong objections, warning of severe consequences for essential programs. Senator Patty Murray and Representative Rosa DeLauro expressed “extreme alarm” in a letter to the White House. They urged adherence to the law and the Constitution. Senate Minority Leader Chuck Schumer criticized the pause, highlighting potential harm to payrolls, rent payments, and vital services like universities and charities.
Nonprofits also raised concerns. Diane Yentel of the National Council of Nonprofits noted the pause could halt cancer research, food aid, and suicide prevention hotlines. Critics argue the spending freeze could face legal challenges, as Congress had previously approved these funds.
Key Details from the Memo
The memo directs agencies to pause new financial awards and disbursements under existing programs. Affected areas include foreign aid, non-governmental organizations, diversity programs, gender initiatives, and green energy projects. Agencies must report paused programs by February 10 and meet a 5:00 PM EST deadline for halting awards and funding.
The State Department had previously halted most foreign assistance. Exceptions included emergency food aid and military funding for Israel and Egypt. Trump’s earlier executive order mandated a 90-day pause in foreign development assistance to review spending efficiency and policy alignment.
As the US, the world’s largest aid donor, spent $68 billion on international aid in 2023, critics argue this pause could disrupt global assistance efforts. The White House has yet to issue an official statement regarding the memo.