The Latest: White House to pause federal grants and loans starting on Tuesday

Yahoo

28-01-2025

The White House i s pausing federal grants and loans starting on Tuesday as President Donald Trump's administration begins an across-the-board ideological review of its spending.
Here's the latest:
The White House memo on federal aid came as a shock to some
'We've never seen anything like this,' said Marcia Howard, executive director of Federal Funds Information for States, a nonprofit that analyzes the effect of federal actions on states. 'It is unprecedented.'
Although the federal government has rescinded unspent funds in the past, it hasn't normally halted grants on the front-end, she said. The grant pause is perhaps most similar to a federal government shutdown, when a congressional impasse on spending legislation delays federal payments for some state and local services.
'What we generally have observed with states under those circumstances is that a couple of weeks isn't hugely disruptive,' Howard said.
States on average receive about 30% of their revenues from the federal government, according to Federal Funds Information for States. The largest grant program is Medicaid, which provides health care for lower-income children and adults. But it's unclear whether the Trump administration's pause will interrupt the flow of Medicaid reimbursement funds to states.
The pause is the latest example Trump harnessing his power to advance his conservative goals
Washington is a hub of spending that flows to various departments, local governments, nonprofits and contractors, and the memo has left countless people who are dependent on that money wondering how they'll be affected.
Unlike during his first term, when Trump and many members of his inner circle were unfamiliar with Washington, this time he's reaching deep into the bureaucracy.
'They are pushing the president's agenda from the bottom up,' said Paul Light, an expert on the federal government and professor emeritus of public service at New York University.
He also said there are risks in Trump's approach, especially with so many voters reliant on Washington.
'You can't just hassle, hassle, hassle. You've got to deliver.'
Immigrant and refugee advocates were cut off even before Monday's funding pause
Last week, the Justice Department halted contracts to provide legal information to people facing deportation in immigration court. Government-funded nonprofit groups were told in an email 'to stop work immediately' on helping people navigate the system's complex laws and procedures.
'We often hear that people don't know what's happening. Why are they detained? What's going to happen next? And we are being stopped from even giving that basic level of orientation,' said Michael Lukens, executive director of Amica Center for Immigrant Rights.
The State Department told groups that give temporary housing and job training to resettled refugees to stop work immediately on government-funded efforts. Global Refuge said it affected 5,870 refugees under its watch.
'Recently arrived refugees who fled unimaginable danger and lawfully came to the U.S. rely on the initial assistance of Global Refuge to help them navigate life in America,' Krish O'Mara Vignarajah, the group's president, wrote in a fund-raising pitch Monday.
State official awaiting guidance on effect of memo pausing federal loans and grants
In Kansas, state Transportation Secretary Calvin Reed said he learned of the Trump administration's move Monday night and that the agency is still reviewing it and awaiting more guidance from federal officials.
Federal funds are a key source of money for highway and bridge projects, and the department expects to receive $664 million in federal funds during the 12 months beginning July 1, almost 40% of its annual budget of nearly $1.7 billion.
'We think it's a low risk for our typical everyday highway projects,' he said Tuesday, before briefing a legislative committee on his department's operations. 'The target seems to be some of the initiatives that the Trump administration has said publicly that they want to change, things like DEI, electric vehicle infrastructure.'
Democrats and independent organizations criticize the administration for federal grant pause
They described the administration's actions as capricious and illegal because Congress had already authorized the funding.
'More lawlessness and chaos in America as Donald Trump's Administration blatantly disobeys the law by holding up virtually all vital funds that support programs in every community across the country,' said a statement from Senate Minority Leader Chuck Schumer, a Democrat from New York. 'If this continues, the American people will pay an awful price.'
Medicare and Social Security benefits won't be affected by the pause in federal grants and loans
That's according to the memo on the pause from Matthew Vaeth, the acting director of the Office of Management and Budget.
But there was no explanation of whether the pause would affect Medicaid, food stamps, disaster assistance and other programs. The memo said it should be implemented 'to the extent permissible under applicable law.'
Pentagon directed by Trump to begin developing the capability to shoot down missiles from space
For years, the U.S. has cautioned that China, Russia and others were weaponizing space. It has at times declassified information about both countries' efforts to create offensive weapons to disable critical U.S. satellites, including the capability to move satellites from orbit, temporarily blind them or potentially even destroy them.
The U.S. Space Force is building a low-orbit ring of redundant satellites that can more quickly track and detect potential missile launches.
But establishing a way to shoot missiles down from space is something the U.S. hasn't pursued since President Ronald Reagan announced the Strategic Defense Initiative — 'Star Wars' as it was commonly known — in the 1980s. The system was never developed due to cost and technological limitations.
Trump is pausing federal loans and grants as his administration reviews spending
The decision by the Republican administration could affect trillions of dollars and cause widespread disruption in health care research, education programs and other initiatives. Even grants that have been awarded but not spent are supposed to be halted.
'The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,' said a memo from Matthew Vaeth, the acting director of the Office of Management and Budget.
The pause takes effect Tuesday at 5 p.m. ET, and it's unclear from the memo how sweeping it will be. Vaeth said all spending must comply with Trump's executive orders, which are intended to undo progressive steps on transgender rights, environmental justice and diversity, equity and inclusion, or DEI, efforts.
▶ Read more about the pause on federal grants and loans
Google to change map names for Gulf of Mexico and Denali when the US updates them
After taking office, President Donald Trump ordered that the water bordered by the Southern United States, Mexico and Cuba be renamed to the Gulf of America. He also ordered America's highest mountain peak be changed back to Mt. McKinley.
'We have a longstanding practice of applying name changes when they have been updated in official government sources,' Google said in a post on X.
The company said Maps will reflect any updates to the Geographic Names Information System, a database of more than 1 million geographic features in the United States.
'When that happens, we will update Google Maps in the U.S. quickly to show Mount McKinley and Gulf of America,' Google said.
▶ Read more about the name changes on Google Maps
Karoline Leavitt, the new White House press secretary, will hold her first briefing Tuesday
Although Leavitt recently took questions from reporters aboard Air Force One, she hasn't used the briefing room until Tuesday's briefing, which is scheduled for 1 p.m. ET.
During President Donald Trump's first term, it was the site of clashes between the administration and journalists. It also went unused for long stretches of time. Trump's third press secretary, Stephanie Grisham, never held a briefing.
It's unclear how frequently Leavitt, the youngest press secretary at 27, plans to speak from the podium, a role that will make her among the most recognizable members of Trump's administration.
US places dozens of senior aid officials on leave, citing possible resistance to Trump orders
At least 56 senior officials in the top U.S. aid and development agency were placed on leave Monday amid an investigation into an alleged effort to thwart President Donald Trump's orders.
A current official and a former official at the U.S. Agency for International Development confirmed the reason given for the move Monday. Both spoke on condition of anonymity for fear of reprisal.
Several hundred contractors based in Washington and elsewhere also were laid off, the officials said.
It follows Trump's executive order last week that directed a sweeping 90-day pause on most U.S. foreign assistance disbursed through the State Department.
As a result of the freeze, thousands of U.S.-funded humanitarian, development and security programs worldwide had stopped work or were preparing to do so. Without funds to pay staff, aid organizations were laying off hundreds of employees.
▶ Read more about the dozens of senior aid officials being put on leave
Netanyahu hopes to meet Trump in Washington as soon as next week, US officials say
Israeli Prime Minister Benjamin Netanyahu is hoping to meet with President Donald Trump in Washington as early as next week, according to two U.S. officials familiar with preliminary planning for the trip.
Should the trip come together in that timeframe, Netanyahu could be the first foreign leader to meet with Trump at the White House since his inauguration last week. The officials, who spoke on condition of anonymity because the planning remains tentative, said details could be arranged when Trump's special Middle East envoy, Steve Witkoff, travels to Israel this week for talks with Netanyahu and other Israeli officials.
Trump teased the upcoming visit in a conversation with reporters aboard Air Force One, but didn't provide scheduling details. 'I'm going to be speaking with Bibi Netanyahu in the not too distant future,' he said.
Netanyahu's plans were first reported by Axios. Netanyahu's spokesman, Omer Dostri, said Monday on the social platform X that the Israeli leader has not yet received an official invitation to the White House.
An Israeli official, however, said Netanyahu is expected to go to the White House in February but did not have a date. That official spoke on condition of anonymity pending an official announcement.
▶ Read more about Netanyahu and Trump's potential meeting
Trump's tariff threat worked on Colombia, but his plans for Canada and Mexico carry higher stakes
Having already forced Colombia to accept deportees by threatening a 25% tariff, President Donald Trump is readying the same move against Canada and Mexico as soon as Saturday.
But this time, the stakes are higher and many economists surveying the possible damage doubt Trump would be comfortable with what they say would be self-inflicted wounds from the tariffs.
Trump has repeatedly insisted that tariffs are coming on Canada and Mexico, despite both countries seeking to address his stated concerns about illegal border crossings and the smuggling of fentanyl. But the Republican president is also motivated by the idea that tariffs would force other countries to 'respect' the United States.
'We're going to immediately install massive tariffs,' Trump said in a Monday speech, adding, 'Colombia is traditionally a very, very strong-willed country,' but it backed down rather than face import taxes.
▶ Read more about Trump's tariff plans for Mexico and Canada
The Associated Press