US President Orders Sweeping Freeze on Federal Grants, Loans

White House Says the Pause Will Not Impact Social Security or Medicare Payments or Assistance Provided Directly to Individuals

- Reuters

WASHINGTON: President Donald Trump's White House ordered a pause in all federal grants and loans starting on Tuesday, a sweeping decision that could disrupt education and health care programmes, housing assistance, disaster relief and a host of other initiatives that depend on billions of federal dollars.

In a memo on Monday, the acting head of the Office of Management and Budget (OMB), which oversees the federal budget, said the money would be put on hold while the Trump administration reviews grants and loans to ensure they are aligned with the Republican president's priorities, including executive orders he signed last week ending diversity, equity and inclusion programmes.

Matthew Vaeth, the acting director of OMB, said the use of federal resources for policies at odds with the president's agenda "is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve".

The OMB memo said on Tuesday's freeze included any money intended "for foreign aid" and for "non-governmental organisations," among other categories.

The White House said the pause would not impact Social Security or Medicare payments or "assistance provided directly to individuals."

That would presumably spare disability payments and the SNAP food programme for the poor, though it was not clear whether health care programmes for veterans and low-income people would be affected.