The Washington Post published a report late on Tuesday evening stating that the Office of Management and Budget at the White House has ordered a temporary halt to all federal grants, causing some confusion.
The newspaper noted that according to a memorandum issued by the Office of Management and Budget, trillions of dollars in grants and loans disbursed by the federal government could be suspended.
The report explained that the acting director of the Office of Management and Budget, Matthew J. Weith, issued instructions via the memorandum for federal agencies to temporarily suspend all activities related to obligations or the disbursement of all federal financial assistance.
The memorandum, which the Washington Post stated it obtained a copy of, called on every agency to conduct a "comprehensive analysis" to ensure that grant and loan programs are consistent with executive orders from President Donald Trump, which aim to ban federal initiatives on diversity, equity, and inclusion, and to limit spending on clean energy, among other measures.
Shortly thereafter, the Wall Street Journal also released a similar report, indicating that the suspension of federal financial assistance programs is pending a review by the Trump administration.
According to a source from the Wall Street Journal familiar with the matter, the memorandum, which was sent by the Office of Management and Budget around 5 PM on Monday, caused confusion among some employees in federal agencies who sought to understand the affected programs and how they should respond.
It remains unclear whether the memorandum calls for the suspension of financial assistance related to the executive orders signed by President Trump during his first week in office, or all current federal financial assistance programs.
