Washington: The White House's Office of Budget and Management has announced a temporary suspension of all federal grants and loans, as revealed in an internal memorandum circulated on Monday. This decision is part of a broader strategy to reassess the allocation of financial assistance in alignment with the administration's priorities.

According to Anadolu Agency, the memorandum highlights the substantial financial assistance provided by the federal government, noting that "in Fiscal Year 2024, of the nearly $10 trillion that the Federal Government spent, more than $3 trillion was Federal financial assistance, such as grants and loans." The directive emphasizes redirecting these funds towards initiatives that bolster a stronger and safer America, alleviate inflation-related financial burdens, and promote American energy and manufacturing. The administration aims to end "wokeness" and government weaponization, enhance governmental efficiency, and advance public health.

The memorandum assures that essential assistance programs, including Social Security and Medicare benefits, will remain unaffected by this suspension. It further details that the temporary halt covers "other relevant agency activities that may be implicated by the executive orders," encompassing financial aid for foreign assistance, nongovernmental organizations, diversity, equity, and inclusion (DEI) initiatives, gender ideology, and environmental programs like the Green New Deal.

This pause is intended to grant the Administration sufficient time to evaluate agency programs and determine optimal funding strategies that adhere to legal frameworks and the President's policy goals. The suspension is set to take effect at 1000GMT on Tuesday.