President Donald Trump has issued an order to freeze both domestic and foreign federal aid, aiming to cut off government funding for causes that don’t align with his agenda.
A memo sent out Jan 27 by Matthew J. Vaeth, acting director of the White House Office of Management and Budget, announced that the freeze would begin Jan 28 at 5 p.m. ET. This move follows a series of executive orders Trump signed after taking office last week.
The memo stated that all federal agencies must temporarily pause activities related to the disbursement of federal financial assistance, including aid for foreign programs, NGOs, diversity and inclusion efforts, “woke” gender initiatives, and the Green New Deal. The pause is meant to give the administration time to review these programs and ensure the funding aligns with Trump’s priorities and legal requirements.
While the freeze could impact billions of dollars in aid, there are exceptions—Social Security, Medicare, and direct payments to individuals won’t be affected.
Vaeth also noted that agencies must immediately identify any urgent legal actions or deadlines that could be impacted by this freeze.
Though the memo didn’t specify which groups or programs would be affected, it made clear that federal aid must be realigned to reflect Trump’s policy goals, which include rolling back initiatives from the Biden administration. On Monday, Trump also signed additional executive orders to undo Biden-era policies, including those on diversity, equity, and inclusion (DEI), and to advance a plan for a U.S.-style missile defense system like Israel’s “Iron Dome.”
At a policy retreat for House Republicans at his Trump National Doral golf resort in Miami, Trump said his administration has been “moving with urgency and historic speed to reverse every single disaster of the Biden administration.”
However, the memo quickly sparked backlash on Capitol Hill, where lawmakers, particularly Democrats, saw it as a direct challenge to Congress’s exclusive power over federal spending. House Appropriations Committee Chair Rep. Rosa DeLauro (D-Conn.) and Senate Appropriations Chair Sen. Patty Murray (D-Wash.) expressed “extreme alarm” over the move, arguing it undermines Congress’s authority, threatens national security, and could harm states, localities, and American families and businesses.
