This article is from the source 'bbc' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.bbc.com/news/articles/c77rdy6gzy5o

The article has changed 7 times. There is an RSS feed of changes available.

Version 3 Version 4
White House pauses federal grants and loans Democrats express 'extreme alarm' after White House halts federal grants
(about 3 hours later)
US President Donald Trump has paused grants, loans and other federal assistance, according to a leaked government memo verified by the BBC's US partner, CBS News.US President Donald Trump has paused grants, loans and other federal assistance, according to a leaked government memo verified by the BBC's US partner, CBS News.
In the memo, the acting head of the Office of Management and Budget (OMB) calls on government agencies to ensure spending is consistent with Trump's priorities. The two-page memo, from the acting head of the White House budget office, instructs agencies to "temporarily pause all activities related to obligations or disbursement of all Federal financial assistance".
The full impact of the pause is not yet clear, although the memo specifies that Medicare and Social Security benefits are not affected. It comes days after the US halted nearly all foreign aid. Much about the order, which goes into effect on Tuesday afternoon, and its scope remain unclear, sowing widespread confusion.
The move has been criticised by members of the rival Democratic Party who warn of "devastating consequences" on programmes that people rely on. The directive could paralyse billions of dollars meant for federal programmes, from disaster relief to cancer research, though Medicare and social security benefits will not be affected.
Diane Yentel of the National Council of Nonprofits said the order could stop cancer research, food assistance and suicide hotlines. Democrats have assailed the freeze, saying it will bring chaos and harm to millions of Americans.
Given the spending that is now on hold was apportioned by Congress, it is likely this will face legal challenges about the scope of presidential power. In a letter to the White House, top Democratics expressed "extreme alarm".
The memo, signed by acting OMB chief Matthew Vaeth, calls on government agencies to temporarily pause their financial assistance programmes, so they can review spending that could be impacted by the various orders Trump has signed . "The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country," wrote Washington Senator Patty Murray and Connecticut Congresswoman Rosa DeLauro.
It says this encompasses "financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal". "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."
Watch: Almost everything Trump did in his whirlwind first week In the memo, which comes days after the US halted nearly all foreign aid, the acting head of the Office of Management and Budget (OMB) Matthew Vaeth called on government agencies to ensure spending is consistent with Trump's priorities.
Federal agencies must "temporarily pause all activities related to obligation or disbursement of all federal financial assistance," and any other programs that included "DEI, woke gender ideology and the Green New Deal," Vaeth wrote.
A deadline of 17:00 EST (22:00 GMT) has been set. Each agency is told to pause the issuing of new awards as well as the disbursement of funds under existing awards. Vaeth suggested that the pause would last until at least mid-February, asking agencies to provide a detailed report on the programmes that have been affected by 10 February.
The memo further demands that all agencies report which programmes have been paused by 10 February. He specifies that Medicare and Social Security benefits are not included in the pause. Other programmes through which aid "is received directly by individuals" are also exempt.
But it remains uncertain how much money is involved. The memo suggests that the federal government spent $10tn (£8tn) in fiscal year 2024, more than $3tn of which went to federal financial assistance. But the source of those numbers is unclear. The nonpartisan Congressional Budget Office reported that the government spent $6.7tn that year.
The White House has not yet commented officially on the leaked document.The White House has not yet commented officially on the leaked document.
Democrats in Washington DC were quick to sound an alarm of concern about the plan. Nonprofit groups have responded in distress.
The top Democratic appropriators in Congress - Washington Senator Patty Murray and Connecticut Congresswoman Rosa DeLauro - sent a letter to the White House Monday evening expressing their "extreme alarm" with the memo. Watch: Almost everything Trump did in his whirlwind first week
"The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country," the congresswomen wrote. "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." "This order is a potential five-alarm fire for nonprofit organizations and the people and communities they serve," Diane Yentel, the chief executive of the National Council of Nonprofits, said in a statement.
The Democratic minority leader of the US Senate, Chuck Schumer, was also critical of the pause: "Congress approved these investments and they are not optional; they are the law." "From pausing research on cures for childhood cancer to halting food assistance, safety from domestic violence and closing suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives," she added.
He added: "It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities."
The move follows last week's news that the Department of State had issued a halt to nearly all existing foreign assistance and paused new aid, according to an internal memo sent to officials and US embassies abroad.The move follows last week's news that the Department of State had issued a halt to nearly all existing foreign assistance and paused new aid, according to an internal memo sent to officials and US embassies abroad.
It appeared to affect everything from development assistance to military aid, making exceptions only for emergency food aid and for military funding for Israel and Egypt.It appeared to affect everything from development assistance to military aid, making exceptions only for emergency food aid and for military funding for Israel and Egypt.
Trump had earlier issued an executive order for a 90-day pause in foreign development assistance pending a review of efficiencies and consistency with his foreign policy. Trump earlier issued an executive order for a 90-day pause in foreign development assistance pending a review of efficiencies and consistency with his foreign policy.
The US is the world's biggest international aid donor, having spent $68bn (£66bn) in 2023 according to government figures. The State Department notice appears to affect everything from development assistance to military aid.The US is the world's biggest international aid donor, having spent $68bn (£66bn) in 2023 according to government figures. The State Department notice appears to affect everything from development assistance to military aid.
EXPLAINED: What Trump has done since taking powerEXPLAINED: What Trump has done since taking power
VOTERS: 10 Americans give their verdict on week oneVOTERS: 10 Americans give their verdict on week one
BORDER: Six things Trump has done about migrationBORDER: Six things Trump has done about migration
PARDONS: Jan 6 defendants get nearly everything they wantedPARDONS: Jan 6 defendants get nearly everything they wanted
WATCH: Trump's first week in three minutesWATCH: Trump's first week in three minutes