Trump White House memo pauses funding for NGOs, DEI and Green New Deal
The White House has recently issued a memo that has put a hold on federal grants, loans, and other financial assistance programs for executive departments. This decision was made in order to assess the funding and determine the best uses of the funding for various programs in line with the law and the President’s priorities. The memo, which was reported by The Wall Street Journal, was sent out by the Office of Management and Budget on Monday at 5 p.m. and will take effect on Tuesday at 5 p.m.
According to the Journal, the memo instructs agencies to temporarily pause all activities related to the obligation or disbursement of federal financial assistance, as well as other relevant agency activities that may be impacted by executive orders. This includes financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the Green New Deal. The federal government reportedly spent over $3 trillion on federal assistance in the 2024 fiscal year.
Each agency is required to conduct a comprehensive analysis of all their federal financial assistance programs to identify programs, projects, and activities that may be affected by the President’s executive orders. The pause must be implemented to the extent permissible under applicable law. Agencies have until February 10 to submit a detailed summary of all paused programs, projects, and activities to the Office of Management and Budget.
Senate Minority Leader Chuck Schumer criticized the memo, stating that it puts billions of community grants and financial support at risk, impacting millions of people across the country. Schumer expressed concerns about missed payrolls, rent payments, and chaos for various organizations and individuals that rely on federal assistance. He emphasized that Congress had approved the funding for these programs and that the pause could have significant consequences.
The memo clarified that Medicare, Social Security benefits, and assistance provided directly to individuals are exempt from the pause. However, the broad language of the memo caused confusion among federal employees, with some seeking guidance from internal counsel on which programs are affected and how departments should respond.
In conclusion, the White House’s decision to suspend federal grants, loans, and financial assistance programs underscores the administration’s commitment to reviewing and optimizing funding allocations in alignment with the law and the President’s priorities. The impact of this pause on various programs and organizations remains a point of concern, with agencies working to comply with the directive and provide necessary information to the Office of Management and Budget by the specified deadline.
