The White House has suspended federal loans and grants: what does this mean for citizens?
29 january 2025 в 02:13
The White House announced in a memorandum that federal loans and grants will be temporarily suspended starting on Tuesday, January 28th at 5:00 PM Eastern Time. According to CNN, Acting Director of the Office of Management and Budget at the White House, Matthew Vait, wrote that the Trump administration «must temporarily suspend all actions related to the commitment or issuance of all federal financial assistance». Does this mean that all federal aid will come to an end?
This news comes after Trump’s decision to send employees of the federal diversity, equality, and inclusion (DEI) office on paid leave, as the administration seeks to end programs and offices related to DEI.
Find out which federal aid programs are temporarily frozen below.
According to Vait’s memorandum obtained by CNN, the temporary suspension of certain federal aid «will provide [Trump] time to review agency programs and determine the best use of funding for these programs in accordance with the law and the president’s priorities».
Vait did not specify which federal aid programs will be suspended. However, according to NBC New York, social benefits and medical benefits will not be affected.
According to Vait’s memorandum, «other relevant agency actions may be affected by presidential directives, including, but not limited to, financial assistance for foreign aid, non-governmental organizations, DEI, enlightened gender ideology, and the Green New Deal».
«Career and political appointees in the executive branch are required to coordinate federal spending and actions with the will of the American people, as expressed through the president’s priorities», - wrote Vait, adding in the memorandum that the budget office «may provide exceptions allowing federal agencies to issue new awards or take other actions in each specific case».
It is currently unclear whether the temporary suspension of federal grants will affect the free application for federal student aid (FAFSA).
It is also unclear whether food stamps, more commonly known as Supplemental Nutrition Assistance Program benefits (SNAP benefits), will be suspended
This news comes after Trump’s decision to send employees of the federal diversity, equality, and inclusion (DEI) office on paid leave, as the administration seeks to end programs and offices related to DEI.
Find out which federal aid programs are temporarily frozen below.
According to Vait’s memorandum obtained by CNN, the temporary suspension of certain federal aid «will provide [Trump] time to review agency programs and determine the best use of funding for these programs in accordance with the law and the president’s priorities».
Vait did not specify which federal aid programs will be suspended. However, according to NBC New York, social benefits and medical benefits will not be affected.
According to Vait’s memorandum, «other relevant agency actions may be affected by presidential directives, including, but not limited to, financial assistance for foreign aid, non-governmental organizations, DEI, enlightened gender ideology, and the Green New Deal».
«Career and political appointees in the executive branch are required to coordinate federal spending and actions with the will of the American people, as expressed through the president’s priorities», - wrote Vait, adding in the memorandum that the budget office «may provide exceptions allowing federal agencies to issue new awards or take other actions in each specific case».
It is currently unclear whether the temporary suspension of federal grants will affect the free application for federal student aid (FAFSA).
It is also unclear whether food stamps, more commonly known as Supplemental Nutrition Assistance Program benefits (SNAP benefits), will be suspended
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