White House Freezes All Federal Grants

Jan. 28, 2025
Internal memo mentions gender-affirming care, creating confusion among healthcare organizations

The White House budget office ordered the freezing of all grants and loans distributed by the federal government, according to an internal memo obtained by The Washington Post (WP).

Matthew J. Vaeth, the acting director of the White House Office of Management and Budget, directed federal agencies on Monday to “temporarily pause all activities related to obligations or disbursement of all Federal financial assistance,” WP’s Jeff Stein, Jacob Bogage, and Emily Davies reported on Jan. 27.

The memo also called for agencies to perform an analysis to warrant that its grant and loan programs align with President Donald Trump’s executive orders.

KFF Health News mentioned that the memo explicitly targets gender-affirming care and global financial assistance. Sarah Owermohle reported that the memo’s “[b]road language about “grants and loans” could ensnare a number of other federal health and assistance programs.” Medicare would not be included.

The memo stated that of the $10 trillion “that the Federal Government spent [in fiscal year 2024, which ended Sept. 30, 2024], more than $3 trillion was Federal financial assistance, such as grants and loans,” WP’s reporters noted.

“The funding delays are going to prove very difficult for grantees under the impression the money is coming, and have rent and salary payments dependent upon it,” said Brian Riedl, a senior fellow at the Manhattan Institute, according to WP.

Chris Megerian with AP News reported on Jan 28. that “[c]ourt battles are imminent, and Democratic New York Attorney General Letitia James plans to ask a Manhattan federal court to block the Republican president’s moves.

“The scope of this illegal action is unprecedented and could have devastating consequences across the country,” said Sen. Patty Murray during a press conference. “For real people, we could see a screeching halt to resources for childcare, cancer research, housing, police officers, opioid addiction treatment, rebuilding roads and bridges, and even disaster relief efforts.”

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