Donald Trump ordered a clean clamp on government spending within a few days of entering the White House.
An internal memorandum sent by the Office of Management and Budget on Monday ordered the federal agencies to stop all grants and loans that the government had already approved. Some people are concerned about whether it means social security and other important payments will be blocked.
The White House Office of Management and Budget Acting Director Matthew Vietnam saw that the memorandum was seen in the memorandum, federal agencies temporarily stopped all activities related to all federal financing or supply. Will be Newsweek.
Why does it make a difference
The benefits of social protection are an important source of income for millions of Americans. It is estimated that 53 million retired people – 16 % of the population – were collecting monthly payment at the end of 2024.
Deate
Does the federal grant affect social protection?
No – The memo specifically offers that “nothing should be considered to affect the benefits of medical or social security,” nor does it include “direct aid to individuals”. The benefits provided by the Social Security Administration, including retirement, survival and disability benefits, will be paid as usual.
However, the fate of financing is unclear for other government programs. This new order could affect billions of dollars in the funds allocated to state and local governments. The federal government funds thousands of programs, including research projects, housing subsidies and educational grants.
Newsweek The White House and the Office of Management and Budget contacted by email to explain which agencies and programs will affect.
“This is not a blanket break on the Trump administration’s federal aid and grant programs,” Trump’s press secretary, Caroline Levit, said in his first White House briefing on Monday.
He said that every agency has the opportunity to present its case to the administration to maintain its financial support.
“If they feel that the programs are necessary and are in accordance with the President’s agenda, the Office of Management and Budget will review these policies,” he said.
What are people saying
Senate minority leader Chuck Shamar said on Monday: “They say it is only temporary, but no one should believe it. Donald Trump will have to instruct his administration to immediately overturn the course and distribute taxpayers’ money into the public. The Congress has been approved.
House minority leader Hakim Jeffrez said in a letter on Tuesday: “Millions of Americans will suffer. As needed, we will fight against freezing extreme funds with a tremendous response to all fronts.”
Harris County, Texas, Attorney Christian de Menfi said in an email Newsweek: “President Trump does not have the authority to withhold funds, which the Congress has already approved. Both the US Constitution and the Federal Law are clear.”
What is the next
A federal judge has temporarily stopped the Trump administration’s order. The temporary hold administration, held by US District Judge Loren L El Khan, prevents its decision from at least 5 pm on February 3.
