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White House Pauses Federal Grants, Loans

Some lawmakers from the Democratic Party have called on the Office of Management and Budget to reverse the memo.

SomelawmakersfromtheDemocraticPartyhavecalledontheOfficeofManagementandBudgettoreversethememo. TheOfficeofManagementandBudget(OMB)directedfederalagencies,inaJan.27memorandum,tosuspendthedistributionofgrants,loans,andotherfinancialassistancewhiletheprogramsareunderreview. Amemo,fromOMBActingDirectorMatthewVaeth,directsfederalagenciestoconductacomprehensiveanalysisofallfinancialassistanceprogramstodeterminewhethertheyarealignedwiththeexecutiveorderssignedbyPresidentDonaldTrumpafterhisinaugurationonJan.20. “Intheinterim,totheextentpermissibleunderapplicablelaw,FederalagenciesmusttemporarilypauseallactivitiesrelatedtoobligationordisbursementofallFederalfinancialassistance,andotherrelevantagencyactivitiesthatmaybeimplicatedbytheexecutiveorders,including,butnotlimitedto,financialassistanceforforeignaid,nongovernmentalorganizations,DEI,wokegenderideology,andthegreennewdeal,”itstated. Vaeth