Federal grants are frozen: what does this mean for Americans?

28 january 2025 в 18:37
Federal grants are frozen: what does this mean for Americans? Federal grants are frozen: what does this mean for Americans?
Now that Donald Trump is president, multiple changes are taking place in the country. After signing several executive orders earlier this month, including sending government employees on diversity, equality, and inclusion paid leave, on Tuesday, January 28, reports emerged that Trump, 78, is freezing federal grants. Naturally, Americans were curious about what this means for them. Could this affect food stamps, financial aid to students, or other government benefits?

Matthew Vett, acting White House budget director, wrote in a new memorandum that «using federal resources to promote Marxist equality, transgenderism, and 'green new deal' social engineering is a waste of taxpayer money that does not improve the everyday lives of those we serve», - according to a copy obtained by CNN.

Vett added that «each agency must complete a comprehensive analysis of all its federal financial assistance programs to identify programs, projects, and activities that may be affected by any of the president’s orders» and clarified that «this temporary pause [in grants] will provide the administration time to review agency programs and determine the best use of funds for these programs in accordance with the law and the president’s priorities».

According to Vett’s memorandum, «financial assistance should be directed towards promoting the administration’s priorities, focusing taxpayer money on promoting a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and production, stopping 'waking up' and weaponizing government, promoting efficiency in government, and restoring America’s health».

As Vett stated, federal grants and loans will be suspended to allow the administration to determine how the funds will be used. The freeze on federal aid may affect certain non-profit organizations, universities, and small business loans.

The freeze on federal aid will be lifted at 5:00 pm Eastern Time on Tuesday, January 28.

Vett’s memorandum did not specify whether the suspension of the fund will affect food stamps. However, the statement noted that the action will be implemented «within the limits allowed by applicable law».

Since Vett did not specify which federal financial assistance programs will be affected, it is unclear whether financial aid to students will be suspended
© Smirnova Olga

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