The White House suspends all federal subsidies and loan disbursement
CNN
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The White House Budget Office ordered a pause in all federal subsidies and loans, according to an internal memorandum sent on Monday, which could impact billions of dollars of government spending and stop public programs that affect millions of Americans.
Federal agencies “should temporarily pause all activities related to the obligation or disburse It was obtained by CNN. Pause also blocks the granting of new subsidies.
The memorandum specifies that the Pause will not affect the benefits of Social Security or Medicare, nor includes the “assistance provided directly to people.”
The freezing of federal assistance is expected to freeze at 5 pm on Tuesday. This is the last measure of the Trump administration to exercise control over federal financing, even the one that has already been assigned by Congress.
“This temporary pause will give the administration time to review the agency’s programs and determine the best uses of the funds for these programs in accordance with the president’s law and priorities,” Vaeth wrote.
The memorandum suggests that the pause is in line with the decrees of President Donald Trump last week.
Pause also applies to “other activities of relevant agencies that may be involved by decrees, including, among others, financial assistance for foreign aid, non -governmental organizations, DEI, gender ideology Woke and the new green agreement, ”according to the note.
“Politically designated people in the Executive Power have the duty to align federal spending and action with the will of the American people expressed through presidential priorities,” Vaeth wrote.
According to the memorandum, the Budget Office “can grant exceptions that allow federal agencies to issue new awards or take other case measures.”
“To the extent that the law requires it,” agencies can also take “certain administrative actions,” such as canceling subsidies, he says.
The memorandum asks the agencies to present to the Budget Office “Detailed Information on any program, project or activity subject to this pause” before February 10.
The news of the order came Monday night without more explanations by the Trump administration, which led to the charity organizations that receive subsidies and loans from the government to question which organizations will be affected.
“This order is a possible fire of five alarms for non -profit organizations and the people and communities they serve,” said Diane Yentel, president and executive director of the National Council of Non -Profit Organizations, in a release.
“From suspending research on children’s cancer to closing shelters for homeless people, suspending food assistance, reducing security against domestic violence and closing direct suicide prevention lines, the impact of even a brief pause on The financing could be devastating and cost lives, ”said Yentel.
The Association of American Universities, composed of the 71 main research universities in the United States, including Notre Dame and Georgia Tech, said Tuesday that “it is still working to evaluate” the impact of the pause.
Member universities “obtain most federal funds granted competitively for investigations that improve public health, seek to address national challenges and contribute significantly to our economic strength, while educating and training leaders and innovative visionaries of tomorrow ”Said the association.
Senator Patty Murray, from the state of Washington, and the representative Rosa Delauro, of Connecticut, the main democratic assigners in Congress, wrote a letter to the White House on Monday night in which they described their “extreme alarm” by the extent.
“The scope of what they are ordering is impressive, unprecedented and will have devastating consequences throughout the country,” the legislators wrote. “We write to you today to urge them in the most energetic terms to respect the law and the Constitution and guarantee that all federal resources are delivered in accordance with the law.”
The senate minority leader, Chuck Schumer, also quickly criticized the pause.
“Congress approved these investments and are not optional; They are the law, ”said New York Democrat in a statement on Monday night. “These subsidies help people in red and blue states, support families, help parents raise their children and lead to stronger communities.”
Schumer added that the action endangers “billions in community subsidies and financial support that help millions of people throughout the country.”
“It will mean defaults of payrolls and rental payments and everything else: chaos for everything from universities to nonfall beneficial organizations,” he said.