In response to President Trump’s order to pause federal grant funding, the White House Office of Management and Budget has released a memo clarifying which programs will be exempt from the directive. The move caused backlash from Democrats and nonprofits who were initially left in the dark about which programs would be affected. Despite assurances from the Trump administration that Medicaid payments would not be impacted, multiple states reported losing access to the online Medicaid portal.
The memo states that programs providing direct benefits to Americans, such as Social Security, Medicare, Medicaid, SNAP, and others, will not be paused. It also clarifies that the pause is not considered “impoundment,” allowing the White House to circumvent Congress’s power of the purse. OMB defended the pause as a necessary step for program implementation to ensure funds are being spent in accordance with the new administration’s policies.
White House press secretary Karoline Leavitt emphasized that the pause is not a blanket halt on federal assistance and grant programs, reassuring Americans that individual assistance will continue uninterrupted. The administration aims to be responsible stewards of taxpayer dollars while fulfilling President Trump’s campaign promise. This clarification comes amid confusion and concern over the implications of the funding pause, asserting that essential programs for small businesses, farmers, Pell grants, Head Start, and rental assistance will continue without interruption.
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