The President of the United States, Donald Trump, has ordered the immediate freezing of all federal grants and loans starting this Tuesday, a measure that could impact essential education and healthcare programs that millions of Americans depend on. The Administration justified the decision by arguing the need to ensure that all funds comply with the recent executive orders signed by Trump, which include restrictions on the rights of transgender people and cuts to diversity, equity, and inclusion (DEI) programs.
In a memorandum issued on Monday, the acting director of the Office of Management and Budget (OMB), Matthew J. Vaeth, indicated that the freeze also affects funds allocated for foreign aid and non-governmental organizations, among other items. The pause ordered by Trump could delay the disbursement of billions of dollars for various programs, including student loans, and would negatively impact health research, food assistance, and funding for organizations supporting veterans and people with disabilities.
Furthermore, the measure could affect aid meant for areas devastated by wildfires in California and flooding in North Carolina, regions Trump visited last week and where he had promised federal support. At a press conference this Tuesday, the Senate Democratic minority leader, Chuck Schumer, described the order as “a stab at the heart of American families,” emphasizing that its impact would be felt in both Republican and Democratic states, in cities, and in rural areas.
The order will take effect at 5:00 PM Eastern Time (10:00 PM GMT) this Tuesday. Additionally, federal agencies will have until February 10 to submit detailed lists of suspended projects, according to the memorandum. Trump's decision has generated concern and criticism, as it is expected to directly affect educational, healthcare, and assistance programs for vulnerable populations in the United States.
