President Donald Trump’s administration has paused federal grants and loans, effective 5 p.m. Tuesday, to conduct a sweeping ideological review of spending. The freeze applies to previously awarded but unspent funds and could disrupt healthcare research, education, and other programs. Acting OMB Director Matthew Vaeth said the move aims to ensure spending aligns with Trump’s executive orders against initiatives promoting equity, transgender rights, and environmental justice.
Democrats criticized the freeze as illegal and harmful, with Senate Minority Leader Chuck Schumer warning of severe consequences for communities nationwide. While Medicare and Social Security benefits remain unaffected, uncertainty looms over programs like Medicaid and disaster assistance.
