OMB orders temporary pause on some federal financial assistance programs

WASHINGTON, D.C. (KBSI) — Per the White House, the Office of Management and Budget has instructed federal agencies to temporarily pause grant, loan and federal financial assistance programs impacted by President Trump’s executive orders.

The pause affects programs implicated by specific executive orders, including those related to reevaluating foreign aid, unleashing American energy and ending certain government programs.

Programs providing direct benefits to individuals, such as Social Security, Medicare, Medicaid and SNAP, are exempt from the pause. Other excluded programs include those supporting small businesses, farmers, Pell grants and rental assistance.

Agencies will work with OMB to review programs and ensure compliance with the president’s executive orders. The pause is temporary, and payments required by law will continue without interruption.

According to OMB, the pause is not an impoundment under the Impoundment Control Act, but rather a necessary step to ensure programs align with the new administration’s policies.