The White House is pausing federal grants and loans starting on Tuesday as President Donald Trump’s administration begins an across-the-board ideological review of its spending, according to the Associated Press.
The decision by the Republican administration could affect trillions of dollars and cause widespread disruption in health care research, education programs, and other initiatives. Even grants that have been awarded but not spent are supposed to be halted.
The pause takes effect at 4 p.m., and it’s unclear from the memo how sweeping it will be. All spending reportedly must comply with Trump’s executive orders, which are intended to undo progressive steps on transgender rights, environmental justice, and diversity, equity, and inclusion efforts.
Washington is a hub of spending that flows to various departments, local governments, nonprofits, and contractors, and the memo has left countless people who are dependent on that money wondering how they will be affected.
Medicare and Social Security benefits will be unaffected by the pause, according to the memo, but there was no explanation of whether the pause would affect Medicaid, food stamps, disaster assistance, and other programs. The memo said it should be implemented “to the extent permissible under applicable law.”
A briefing with White House press secretary Karoline Leavitt, her first, is scheduled for Tuesday at noon.
