The White House has temporarily suspended federal loans and grants: what happened?
30 january 2025 в 00:37
The White House announced in a memorandum that federal loans and grants will be temporarily suspended starting 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 Vett, wrote that the Trump administration «must temporarily suspend all actions related to the commitment or issuance of all federal financial assistance». However, just one day later, the White House canceled the freeze.
This news came after Trump’s decision to send employees of federal diversity, equality, and inclusion programs (otherwise known as DEI workers) on paid leave, as the administration aims to end DEI-related programs and offices.
According to Vett’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».
Vett did not specify which federal aid programs would be suspended. However, according to NBC New York, social security benefits and Medicaid would not be affected.
According to Vett’s memorandum, «other relevant agency activities [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 appointments in the executive branch must align federal spending and actions with the will of the American people, as expressed through the president’s priorities», - Vett wrote, adding in the memorandum that the budget office «may provide exceptions allowing federal agencies to issue new awards or take other actions on an individual basis».
Approximately 24 hours later, the White House canceled the memorandum known as OMB 25−13.
It is unclear whether any federal changes will affect the free application for federal student aid (also known as FAFSA).
It is also unclear whether food assistance benefits, most commonly known as Supplemental Nutrition Assistance Program benefits (or SNAP benefits), will be suspended under the Trump administration
This news came after Trump’s decision to send employees of federal diversity, equality, and inclusion programs (otherwise known as DEI workers) on paid leave, as the administration aims to end DEI-related programs and offices.
According to Vett’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».
Vett did not specify which federal aid programs would be suspended. However, according to NBC New York, social security benefits and Medicaid would not be affected.
According to Vett’s memorandum, «other relevant agency activities [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 appointments in the executive branch must align federal spending and actions with the will of the American people, as expressed through the president’s priorities», - Vett wrote, adding in the memorandum that the budget office «may provide exceptions allowing federal agencies to issue new awards or take other actions on an individual basis».
Approximately 24 hours later, the White House canceled the memorandum known as OMB 25−13.
It is unclear whether any federal changes will affect the free application for federal student aid (also known as FAFSA).
It is also unclear whether food assistance benefits, most commonly known as Supplemental Nutrition Assistance Program benefits (or SNAP benefits), will be suspended under the Trump administration
© Puhova Marina
