US President Donald Trump has instructed government agencies to halt grants, loans, and other federal assistance in line with his priorities, as stated in a leaked memo verified by CBS News, a US partner of the BBC.
The memo, signed by acting OMB chief Matthew Vaeth, instructs agencies to temporarily pause financial aid programs to assess spending affected by Trump's executive orders. The suspension excludes Medicaid and Social Security benefits, and its full impact remains unclear.
A deadline of 17:00 EST (22:00 GMT) has been set for agencies to pause new awards and fund disbursements. They must report paused programs by February 10. The White House has not officially commented on the leak.
Democrats, including Senator Patty Murray and Congresswoman Rosa DeLauro, expressed concern about the "breathtaking" scope of the memo, emphasizing the need to abide by the law. Senate Minority Leader Chuck Schumer criticized the move, warning of chaotic repercussions for various sectors.
Last week, the Department of State halted nearly all foreign aid, except for emergency food aid and certain military funding. Trump had previously ordered a 90-day pause in foreign development assistance for policy review.
Despite being the largest global aid provider in 2023, spending $68bn, the US's recent aid halts have drawn criticisms and raised legal challenges.