White House calls move “responsible”
President Donald Trump on Tuesday ordered a halt on all federal grants, loans and other financial assistance programs in a new move aimed at enforcing his conservative spending cut agenda.
White House budget and management chief Matthew Vaeth said in an internal statement that federal agencies “must temporarily suspend activities related to the disbursement of all federal financial assistance.”
“Using federal resources to promote Marxist equity, transgenderism, and the social engineering policies of the Green New Deal is a waste of taxpayer money that does not improve the daily lives of those we serve,” the statement said, as reported by CNN.
This temporary pause, which will take effect at 5:00 p.m. (local time), will give the new administration time to review all subsidies granted so that they are aligned with the executive orders recently promoted by Trump, who has undertaken an extensive plan to limit federal spending.
The document states that the pause will not affect Social Security, the Medicare health program or assistance to specific individuals, although it leaves in the air many funds already approved by the US Congress during the term of his predecessor, Joe Biden.
The measure announced by Trump has caused a stir in the United States, since it could affect not only subsidies to state programs related to energy transition, disasters or housing, but also loans to American companies.
In fact, the leader of the Democratic minority in the Senate, Chuck Schumer, has recalled that Congress has already approved investments and that the measure promoted by Trump will affect all types of subsidies granted by the federal government, from universities to charities.
New York Attorney General Letitia James has already announced that she will “take legal action” in response to the interruption of federal grants and loans. “We will not sit idly by while this administration harms our families,” she said in a message posted on social media.
“VERY RESPONSIBLE MEASURE”
Later, White House spokeswoman Karoline Leavitt clarified in her first press conference that this “temporary” pause is the president’s “responsibility” to be a “good steward of taxpayers’ money.”
“The reason for this is to ensure that every penny does not conflict with the executive orders and actions this president has taken,” said the White House spokeswoman, adding that it is a “very responsible measure.”
“There was $37 million that was about to go out the door to the World Health Organization (WHO), which is an organization, as everyone knows, that President Trump, with a flick of his pen in that executive order, no longer wants the United States to be a part of,” he explained.
This comes after the State Department announced last week the freezing of foreign aid funds, with the exception of Israel and Egypt, which not only affects development assistance but also military aid.
Trump has also signed a series of executive orders, such as the elimination of diversity, equity and inclusion (DEI) programs, considering that these actions “undermine” meritocracy and “the consciences of Americans by engaging in hateful racial and sexual discrimination.”
