Washington President Donald Trump’s administration imposed a surprise halt on almost all federal grants and loans Monday night, which has caused confusion among Congress, the government, state programs, and non-profits that depend on federal financing.
A two-page, ambiguously worded memo was distributed to all federal agencies Monday night by the Office of Management and Budget, instructing them to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.”
Additionally, the agency requested information on a variety of programs from federal departments that offer financial help in an 836-page spreadsheet that NBC News was able to receive.
- The federal Pell Grant program
- School meals for low-income students
- The WIC nutrition program for pregnant women and infants
- Wildfire preparedness for the Department of Interior
- The Medicare enrollment assistance program
- USAID foreign assistance
- Mine inspections
- A reintegration program for homeless veterans
OPM requested that the data be turned in by February 7.
Lawmakers rushed to determine the impact of the funding suspension on their constituents on Capitol Hill.
Rep. Rosa DeLauro, D-Conn., and Sen. Patty Murray, D-Wash., the Democratic leaders of the House and Senate appropriations committees, wrote to OMB, saying, “The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country.” They also claimed that the pause was illegal and unconstitutional.
When NBC News contacted groups that represent small companies and non-profit organizations, they said they were also having trouble determining what the ramifications would be for their members, such as those who provide early childhood education, housing, and health care.
Although we recognize that this is a developing story, Yasmina Vinci, executive director of the National Head Start Association, stated that this disruption will, at most, make it more difficult for Head Start agencies to compensate the hundreds of thousands of employees, contractors, and small businesses that support Head Start operations across the nation. Hundreds of thousands of households will, at worst, be unable to rely on the essential services and probably won’t be able to work.
According to the OMB document released Monday night, the funding review would focus on “activities that 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.”