Trump makes shock move on federal loans and grants to target "woke" policies
Washington DC - The White House has placed a pause on federal loans and grants so that President Donald Trump's administration can review them and determine if they line up with his agenda.
On Monday, Matthew Vaeth, the acting director of the Office of Management and Budget (OMB), sent out a two-page memorandum ordering agencies to "temporarily pause all activities related to obligations or disbursement of all federal financial assistance."
The pause will begin on Tuesday at 5 PM EST, and agencies are ordered to "complete a comprehensive analysis" of programs that may violate Trump's recent executive orders aimed at destroying "woke" and DEI policies, which is to be submitted by February 10.
"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," Vaeth wrote.
Vaeth noted that the pause will not affect Social Security, Medicare benefits, and "assistance provided directly to individuals."
The move has already gained heavy criticism, as many believe that pausing certain programs could cause disaster for Americans and institutions, and the future of these programs appears uncertain.
Users on social media have also expressed concern that popular programs, such as FAFSA, which is used for college assistance, and SNAP, a food assistance program, could be affected.
In a post on X, Senate Minority Leader Chuck Schumer described it as "terrible, unconstitutional, and illegal" and argued, "its impacts will be felt over and over and over again by families and communities across the country."
Congressional Democrats hit back at Donald Trump's move
On Monday night, Senator Patty Murray of Washington state and Representative Rosa DeLauro of Connecticut sent a letter to the White House regarding their "extreme alarm" over the move.
"The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country," the letter stated. "We write today to urge you in the strongest possible terms to uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law."
The letter goes on to argue the move will have "far-reaching consequences" and will put "the financial security of our families, our national security, and the success of our country at risk."
Cover photo: MANDEL NGAN / AFP