President Donald Trump has directed a pause on federal grants and loans as his administration conducts a sweeping review of government spending to align with his policy priorities.
The White House announced that the freeze, effective from 5 p.m. ET on Tuesday, aims to ensure all federal funding complies with Trump’s executive orders. These orders seek to roll back progressive policies related to transgender rights, environmental justice, and diversity, equity, and inclusion (DEI) initiatives.
According to administration officials, the pause will not affect individual assistance programs such as Social Security, Medicare, food stamps, student loans, and scholarships. However, it is expected to disrupt trillions of dollars in funding for education, healthcare research, infrastructure projects, and other federally supported initiatives.
Legal Challenges Loom
The decision has sparked backlash from Democrats and advocacy groups, who argue that the move is illegal and could have severe consequences nationwide. New York Attorney General Letitia James has vowed to challenge the funding freeze in court, calling it an unconstitutional overreach.
“My office will take immediate legal action against this administration’s unlawful pause on federal funding,” James said in a statement.
Senate Minority Leader Chuck Schumer (D-NY) denounced the move as “more lawlessness and chaos in America,” while Senator Patty Murray (D-WA) warned that it could halt resources for child care, cancer research, housing, opioid addiction treatment, and even disaster relief efforts.
Trump Administration Defends Move
The White House maintains that the pause is necessary to prevent federal resources from being used to fund what it calls “Marxist equity, transgenderism, and Green New Deal social engineering policies.”
Matthew Vaeth, acting director of the Office of Management and Budget (OMB), stated that each federal agency must conduct a comprehensive review of their financial assistance programs and ensure they align with Trump’s policy directives.
While the full impact of the freeze remains unclear, government agencies, state officials, and nonprofit organizations that rely on federal funding are scrambling for answers.
Trump’s latest move reflects his aggressive approach to reshaping the federal government in line with his conservative agenda as he returns to the White House for a second term.
A press briefing with White House Press Secretary Karoline Leavitt is scheduled for 1 p.m. ET, where further details on the policy are expected.
