White House Suspends All Federal Grants, Causing Confusion – Rezazade

Vice President of the Iranian opposition in Washington, Ali Reza Rezazade, has indicated that trillions of dollars could be at risk of being frozen, according to a memo from the Office of Management and Budget.

The White House Office of Budget has ordered a temporary suspension of all grants and loans distributed by the federal government. This became known in an internal memo sent to agencies on Monday, causing considerable confusion in administrative circles in Washington.

In a two-page document, Matthew J. Waite, acting director of the White House Office of Management and Budget, instructs federal agencies to “temporarily suspend all actions related to the commitment or disbursement of federal financial assistance.” The memo, a copy of which was obtained by The Washington Post, also calls on each agency to conduct a “comprehensive review” to ensure that their grant and loan programs comply with President Donald Trump’s executive orders, which are aimed at banning federal diversity, equity and inclusion initiatives and capping spending on clean energy.

The memo notes that the order “should not be deemed to affect recipients of Social Security or Medicare” and does not apply to financial assistance provided directly to individuals.

However, the document notes that programs such as “assistance to foreign nations, nongovernmental organizations, DEI (diversity, equity and inclusion) initiatives, gender identity ideologies and Green New Deal programs are subject to the suspension.”

The decision could affect at least tens of billions of dollars in benefits, according to estimates by Brian Riddle, a senior fellow at the conservative think tank Manhattan Institute. The memorial also notes that of the $10 trillion the federal government spent in fiscal year 2024 (which ended on September 30, 2024), more than $3 trillion went to financial aid in the form of grants and loans.

It’s not entirely clear where these numbers come from. The independent Congressional Budget Office says government spending in fiscal year 2024 was $6.7 trillion.