White House budget office suspends federal financial aid programs
The White House's Office of Management and Budget has instructed all federal agencies to cease spending on any financial assistance programs if they suspect it might conflict with President Donald Trump's recent executive orders.
Agencies must comply beginning at 5 p.m. EST on Tuesday, according to the OMB memo obtained by ABC News.
However, the order does not specify which financial aid programs would have to be suspended.
Given the spate of orders issued this month -- some of which have prompted lawsuits -- the memo could have sweeping implications.
The federal government funds thousands of programs, including research projects, housing subsidies and educational grants.
"The use of Federal resources to advanced Marxist equity, transgenderism and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day to day lives of those we serve," wrote Matthew Vaeth, acting director of the OMB.
Vaeth told agency chiefs they must "identify and review all federal financial assistance programs and supporting activities consistent with the President's policies and requirements."
They are being told they must report back by Feb. 10 on all programs that apply.
"In the interim, to the extent permissible under applicable law, Federal agencies must temporarily pause all activity related to obligation or disbursement of all federal financial assistance and other relevant agency activities that may be implicated by the executive orders, including, but not limited to financial assistance for foreign aid, non-governmental organizations, DEI, woke gender ideology, and the green new deal," Vaeth wrote.
In response to the OMB memo, Minority Leader Chuck Schumer issued a statement late Monday calling on the Trump administration to immediately "reverse course."
"Congress approved these investments and they are not optional; they are the law," Schumer said. "These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities."
