White House defends sweeping pause on grants and loans
The Trump White House on Tuesday defended a widespread pause on federal grants and loans in the face of confusion among nonprofit groups and outrage from Democrats over the order.
Press secretary Karoline Leavitt fielded several questions at her first briefing about the pause, which was announced late Monday and goes into effect Tuesday at 5 p.m.
“It is a temporary pause, and the Office of Management and Budget is reviewing the federal funding that has been going out the door,” Leavitt said.
She emphasized that programs providing direct benefits to Americans, such as Medicare, Social Security and food stamps, were not impacted by the pause. She said the focus is on ensuring government spending aligns with Trump’s agenda and does not fund programs that deal with diversity, equity and inclusion (DEI), investments to combat climate change or nongovernmental groups like the World Health Organization.
“President Trump is looking out for you by issuing this pause because he is being a good steward of your taxpayer dollars,” Leavitt said.
A memo issued by Matthew Vaeth, acting director of the Office of Management and Budget (OMB), directs federal agencies to temporarily pause “all activities related to obligation or disbursement of all Federal financial assistance.”
“This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities,” the memo states.
Several Democratic states have signaled imminent legal action to block the order. Other Democrats have called for delaying the confirmation of Trump’s pick to lead OMB, Russ Vought, until the administration backs off.
“Trump’s actions would wreak havoc in red and blue communities everywhere. This is funding that communities are expecting, and this memo is creating chaos and confusion,” said Sen. Patty Murray (D-Wash.), the ranking Democrat on the Appropriations Committee.
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