Are All Federal Grants Paused? White House Rescinds Federal Aid Freeze – Hollywood Life

The White House announced in a memo that federal loans and grants would temporarily pause starting on Tuesday, January 28, at 5 p.m. ET. Per CNN, White House Office of Management and Budget acting director Matthew Vaeth wrote that Donald Trump‘s administration “must temporarily pause all activities related to obligation or disbursement of all federal financial assistance.” However, just one day later, the White House rescinded the freeze.

The news comes on the heels of Trump’s decision to put federal diversity, equity and inclusion employees (otherwise known as DEI workers) on paid leave as the administration aims to terminate DEI-related programs and offices.

Why Is Trump Freezing Federal Loans and Assistance?

According to Vaeth’s memorandum obtained by CNN, the temporary pause of certain federal aid “will provide [Trump’s] administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the president’s priorities.”

Which Federal Aid Programs Are on Pause?

Vaeth did not specify which federal assistance programs would have been paused. However, according to NBC New York, social security and medicare benefits wouldn’t have been affected.

Per Vaeth’s memo, “other relevant agency activities [may] be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology and the green new deal.”

“Career and political appointees in the executive branch have a duty to align federal spending and action with the will of the American people as expressed through presidential priorities,” Vaeth wrote, adding in the memo that the budget office “may grant exceptions allowing federal agencies to issue new awards or take other actions on a case-by-case basis.”

About 24 hours later, the White House rescinded the memorandum known as OMB 25-13.

Will FAFSA Be Paused?

It is not clear if the free application for federal student aid (a.k.a FAFSA) will be impacted by any federal changes.

Are Food Stamps on Pause?

It’s still unclear if food stamps, most commonly known as Supplemental Nutrition Assistance Program benefits (or SNAP benefits), will be paused under Trump’s administration.