The White House on Tuesday said the freeze on federal grants and loans disbursed was a short-term pause to give agencies time to review how they spend money.
The announcement of the pause late Monday set off a firestorm of alarm and confusion around Washington, among federal agencies and among recipients of federal financial assistance trying to figure out what payments were placed on hold.
A senior administration official stressed the pause is only temporary and could last as little as one day if a government agency concludes the funds comply with President Trump’s executive orders.
The review is limited to diversity equity and inclusion programs at federal agencies, climate initiative spending and funding that is being spent on nongovernmental organizations, the official said.
The official highlighted several examples of agency reviews turning up evidence of money being spent that wasn’t in line with Mr. Trump’s priorities, including the State Department stopping millions of dollars it was spending to send condoms to Gaza and Health and Human Services ending grants distributed to the World Health Organization, which the U.S. has withdrawn from.
If the agency concludes the pause will have an adverse impact, it can request an exemption, the official said.
The pause is necessary, according to the official, so agencies can act as “faithful stewards of taxpayer money,” adding that it is common for new administrations to review federal spending.
The Office of Management and Budget issued a memo late Monday that ordered a spending pause on federal assistance programs, noting that more than $3 trillion was spent on such initiatives in fiscal year 2024.
“The use of federal resources to advance 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,” the memo said.
The White House has said the pause will not affect Medicare or Social Security benefits, but it didn’t offer details about what would be affected.
• Jeff Mordock can be reached at jmordock@washingtontimes.com.