Trump Administration Halts Federal Grants and Loans: What It Impacts

The Trump administration has announced a halt on federal grants and loans starting Tuesday, triggering confusion and concern among organizations dependent on government funding. This decision comes as the White House begins a broad review of spending to align it with President Donald Trump’s executive orders. The administration says the pause ensures compliance with policies aimed at reversing progress on transgender rights, environmental justice, and diversity, equity, and inclusion (DEI) initiatives. What the freeze will not affect: Social Security Medicare Food stamps Student loans Scholarships What the freeze could disrupt: Health care research Education programs Other initiatives funded by federal grants (including those already awarded but not yet spent) The potential impact involves trillions of dollars. “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,” wrote Matthew Vaeth, acting director of the Office of Management and Budget. The pause, set to take effect at 5 p.m. ET, was announced just a day earlier, leaving many agencies scrambling to assess the impact. Democrats and independent organizations have condemned the move as arbitrary and unlawful, arguing it...