White House stops federal grants and loans

US President Donald Trump has stopped gratuitous funds, loans and other federal aid, according to a leaking government note checked by the US partner of the BBC, CBS News.

In the note, the acting manager of the Management and Budget Office (OMB) calls on government agencies to ensure that the costs are in line with Trump’s priorities – and nods a number of executive orders that the return president made.

The full impact of the pause is not yet clear, although the note states that Medicaid and social security are not affected. There are days after the United States has stopped almost all foreign help.

This move was criticized by members of the rival Democratic Party and could face legal challenges.

The note signed by the position of OMB, Matthew Waet, calls on government agencies to temporarily pause their financial aid programs so that they can review the costs that can be influenced by the various orders Trump signed.

It states that this covers “financial assistance for foreign assistance, non -governmental organizations, DEI, awakens the ideology of gender and the green new deal.”

A deadline of 17:00 EST (22:00 GMT) has been set. Each agency has been told to suspend the issuance of new awards, as well as the payment of funds on existing awards.

The memorandum further requires all agencies to report which programs were pauses by February 10th.

The White House has not yet officially commented on the leaking document.

Democrats in Washington quickly quickly expressed anxiety about the plan.

The best democratic assigns in the Congress – Washington Senator Patti Murray and Connecticut Rosa Delauro Congress – sent a letter to the White House on Monday night, expressing their “extreme alarm” with the note.

“The range of what you are ordering is breathtaking, unprecedented and will have pernicious consequences throughout the country,” writes congress women. “Today we write to call you in the strongest possible conditions for compliance with the law and the constitution and guarantee all federal resources are provided in accordance with the law.”

The leader of the US Senate’s democratic minority Chuck Sumer was also critical of the break: “Congress approved these investments and they are not optional; They are the law. ”

He added: “It will mean missed salaries and payments for rent and everything in between: chaos for everything-from universities to non-profit charity organizations.”

This move follows the news from last week that the State Department has stopped almost all existing foreign aid and a pause of new aid, according to an internal note sent to officials and US embassies abroad.

It seems that it affects everything from helping to develop military assistance, which only exceptions to emergency food and military funding for Israel and Egypt.

Earlier, Trump issued an enforcement order for a 90-day pause in foreign development for development in anticipation of a review of efficiency and compliance with its foreign policy.

The United States is the largest international assistance donor in the world to spend $ 68 billion (£ 66 billion) in 2023 according to government data. The State Department’s message seems to affect everything from helping to develop military assistance.