Trump's Spending Freeze Shakes National Programs

Donald Trump's administration has ordered a halt on federal grants and loans to ensure alignment with his priorities, affecting education, health, and more. Democrats and nonprofits have criticized the move, calling it unlawful and disastrous. The order is seen as an attempt to reshape the federal government.


Devdiscourse News Desk | Updated: 28-01-2025 20:00 IST | Created: 28-01-2025 20:00 IST
Trump's Spending Freeze Shakes National Programs
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In a contentious move, Donald Trump's administration has paused all federal grants and loans, effective immediately, seeking alignment with presidential priorities. Key sectors such as education and health care face potential disruptions due to this sweeping decision.

The Office of Management and Budget (OMB), led by Acting Director Matthew Vaeth, issued a memo outlining that federal resources used contrary to Trump's agenda are wasteful. This spending freeze aims to align federal spending with executive orders ending diversity and inclusion programs.

Nonprofits and Democrats have expressed strong opposition, claiming the order could drastically impact essential services and violates legislative authority. Notable figures such as Senate Democratic Leader Chuck Schumer argue that this halt will harm millions of Americans relying on federal funds.

(With inputs from agencies.)

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