Trump pauses ALL federal grants, loans and other assistance, leaked memo reveals
President Donald Trump paused trillions of dollars of funding in a stunning move to bring diversity, equity and inclusion (DEI) programs in the federal government to a screeching halt.
In an announcement that sent shockwaves through Washington, the White House budget office issued a sweeping order to halt taxpayer money being doled out for initiatives in education and health care, housing assistance, disaster relief and a host of other areas.
It will be put on hold while Trump officials ensure no publicly funded programs are 'woke,' and that all are in line with executive orders he signed last week abolishing the government's DEI agenda.
The leaked memo from the Office of Management and Budget (OMB) details how agencies must now use the power of the purse to make sure their initiatives are in line with the new administration's priorities.
The White House is pushing back on the reports of a funding freeze.
One senior administration official told DailyMail.com the directive is being 'misreported.'
'This is simply guidance for agencies to review if grants, loans, programs are in compliance with the President's EOs,' the official said. 'Also, it very clearly states that it does NOT impact individual payments or assistance.'
'If the activity is not in conflict with the President's priorities, it will continue with no issues.'
The memo reiterates that the pause is not meant to target any 'assistance provided directly to individuals,' such as Medicare or Social Security.
President Donald Trump (pictured on Monday) froze all federal grant, loan and financial assistance programs in another effort to weed out DEI programs, a leaked memo has revealed
The temporary pause will not affect 'assistance provided directly to individuals,' like Social Security or Medicare benefits, the memo specifies
And the Education Department said the OMB memo does not impact federal funds and loans it provides to students.
'Title IV, HEA funds that are provided to individual students, such as Federal Pell Grants and Direct Loans, are not impacted by yesterday's guidance,' Madison Biedermann, the Deputy Assistant Secretary for Communication Strategy at DOE told DailyMail.com.
The actions would bring the budget into alignment with the president's push to end the government advancement of 'wokeness,' transgenderism, environmentalism and 'Marxist equity' – or so-called diversity, equity and inclusion (DEI) programs.
Many institutions are scrambling to decipher the order and find out if their funding and grants will be pulled.
In Fiscal Year 2024, more than $3 trillion was dolled out for federal financial assistance, much of which the new administration feels was a waste of taxpayer funds.
The suspension goes into effect Tuesday at 5 p.m. EST, according to the OMB memo.
Agencies are given until February 10 to submit detailed information on any programs, projects or activities subject to the pause.
By this cutoff date, OMB will likely be run by Trump's incoming nominee for the office's director, Russ Vought – a man known for wanting to slash government spending.
The Association of American Universities, composed of 71 leading universities, said Tuesday it is 'still working to assess' the impact a pause on its research funding would have on members.
This group's universities, including NYU, Notre Dame, Stanford and Georgia Tech, 'earn[s] the majority of competitively awarded federal funding for research that improves public health [and] seeks to address national challenges.'
The memo, signed by acting OMB director Matthew Vaeth, directed federal agencies to halt all activities associated with open notices of funding opportunities.
'In the interim, to the extent permissible under applicable law, federal agencies must temporarily pause all activities related to obligation or disbursement of all federal financial assistance,' Vaeth wrote.
Vaeth called on all government agencies to 'identify and review' all federal financial assistance programs and supporting activities to ensure that spending is consistent with the Trump Administration's priorities.
The memo is an order to bring the budget into compliance with the slew of executive orders Trump signed during his first week back in the Oval Office. Pictured: President Trump holds up an order he signed during an indoor inaugural parade at the Capital One Arena on January 20
Democrats are already expressing rage over the memo, with lawmakers claiming it's not a legal action to pause the funding.
'Congress approved these investments and they are not optional; they are the law,' Senate Minority Leader Chuck Schumer wrote in a Monday evening statement.
It does appear, however, the president holds the power to pause spending as long as it is subject to review.
Trump also made clear before his reelection that he believes laws curbing a president's power to withhold congressional spending are 'unconstitutional.'
Impoundment is an act by a U.S. president of not spending money that Congress appropriated.
Congress passed the Impoundment Control Act of 1974, which Trump now wants repealed or overturned by the Supreme Court.
Sen. Patty Murray (D-Wash.), vice chair of the Senate Appropriations Committee, and Rep. Rosa DeLauro (D-Conn.), ranking member of the House Appropriations Committee, wrote to the White House on Monday regarding the directive.
'The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country,' they said in the letter expressing 'extreme alarm.'
The memo suggests the pause is in line with the executive orders Trump already signed, including those seeking to dismantle programs related to DEI advancements or hiring practices.
The pause applies to all 'other relevant agency activities that may be impacted by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal'.
The White House has not yet commented on the leaked document. DailyMail.com has approached the Administration for comment.
Since returning to office last week, the Trump administration has reassigned or fired hundreds of workers in several agencies, aiming to fulfill Trump's vow to remake a federal bureaucracy he believes was hostile to him during his 2017-2021 presidency.
Trump put on leave about 60 senior career officials at the US Agency for International Development (USAID).
The Administration on Saturday urged USAID staff to help transform how Washington allocates aid around the world in line with Trump's 'America First' policy and threatened 'disciplinary action' for any staff ignoring its orders.
An internal memo sent to USAID employees on Monday evening said the new leadership identified several actions in the agency that 'appeared to be designed to circumvent the President's Executive Orders and the mandate from the American people.'
'As a result, we have placed a number of USAID employees on administrative leave with full pay and benefits until further notice while we complete our analysis of these actions,' Acting Administrator Jason Gray said in the memo.
The administration's actions threaten billions of dollars of life-saving aid from the world's largest single donor. In fiscal year 2023, the US disbursed $72 billion in assistance.
It provided 42 percent of all humanitarian aid tracked by the United Nations in 2024.
Hours after taking office, Trump ordered a 90-day pause in foreign aid to review if it was aligned with his foreign policy priorities. On Friday, the State Department issued a stop-work order worldwide even for existing assistance.
