Now that Donald Trump is president, multiple changes are sweeping the nation. After signing several executive orders earlier this month — including putting government DEI employees on paid leave — reports emerged on Tuesday, January 28, that Trump, 78, is freezing federal grants. Naturally, Americans were curious what this meant for them. Could it impact food stamps, student financial aid or other government-based aid?
Matthew Vaeth, White House Office of Management and Budget acting director, wrote in a new memorandum that the “use of federal resources to advance Marxist equity, transgenderism and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” according to a copy obtained by CNN.
Vaeth added that “each agency must complete a comprehensive analysis of all of their federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the president’s executive orders” and clarified that this “temporary pause [of grants] will provide the 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.”
Learn what freezing federal grants means below.
“There is a lot of confusion this morning about what exactly this directive means, but it may be the most far reaching executive action this White House has taken yet. “@jonkarl reports on the fallout after the Trump administration announced a freeze on all federal grants. pic.twitter.com/TVWVDVtMy2
— Good Morning America (@GMA) January 28, 2025
Why Were Federal Grants and Loans Paused?
According to Vaeth’s memorandum, “financial assistance should be dedicated to advancing administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, promoting efficiency in government, and making America healthy again.”
As Vaeth stated, federal grants and loans will be paused in order for the administration to determine what funds will be used. The seizure of federal grants and loans could impact certain nonprofit organizations, universities and small business loans.
When Will Federal Grants Stop?
The freeze of federal aid will pause at 5 p.m. ET on Tuesday, January 28.
Did Trump Stop Food Stamps?
Vaeth’s memo did not clarify whether the fund pause will affect food stamps. However, the statement noted that the action will be implemented “to the extent permissible under applicable law.”
Federal Student Aid Update
Since Vaeth did not specify which federal financial assistance programs would be impacted, it’s still unclear if student financial aid will be paused.
