
As reported by Politico, President Donald Trump’s budget office issued a sweeping directive on Monday (Jan. 27) that ordered a halt to “all federal financial assistance.” The suspension will target funding across various areas, including domestic infrastructure, energy initiatives, and diversity-related programs. In a two-page memo said to have been verified by multiple sources, the Office of Management and Budget instructed all federal agencies to cease payments, with Social Security and Medicare being the only exceptions.
“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,” the document read. The freeze, first reported by journalist Marisa Kabas, is set to take effect at 5 p.m. Tuesday (Jan. 28), just one day after the memo was said to have been distributed to federal agencies.
Although the freeze excludes assistance “provided directly to individuals,” the memo did not clarify whether this exemption covers funds initially allocated to states or organizations before being distributed to households. Furthermore, it lacked specific details about which payments would be affected. Instead, it broadly instructed federal agencies to “temporarily” suspend financial aid that falls under Trump’s executive actions. This includes pausing funds for landmark Democratic initiatives like the Inflation Reduction Act and the bipartisan infrastructure law passed in 2021. There was also a 90-day suspension request for foreign aid.
Senate Minority Leader Chuck Schumer criticized the order soon after it went public. “Donald Trump’s administration is jeopardizing billions upon billions of community grants and financial support that help millions of people across the country,” he wrote on X, formerly known as Twitter. “It will mean missed payrolls and rent payments and everything in between – chaos for everything from universities to non-profit charities, state disaster assistance, local law enforcement, aid to the elderly, and food for those in need.”