Trump Administration Reverses Course on Grants, Aid, and Loans
9
World
January 29, 2025 20:28
us - The Trump administration in the US cancels the directive to pause federal grants, loans, and other financial aid programs.
Trump Administration Reverses Decision on Financial Aid Programs
The Trump administration in the US has reversed its decision to pause federal grants, loans, and other financial aid programs, following a temporary block by a federal judge.
According to a document viewed by The Wall Street Journal, the White House issued a note on Wednesday to federal employees canceling the original directive.
The Office of Management and Budget (OMB) had previously stated that the temporary freeze affected programs related to diversity, equality, inclusion, the 'green new deal,' and funding for civil society organizations that could harm national interests.
This move marks a rare and sudden reversal for President Trump, known for not typically backtracking in politics.
While White House aides defended the freezing of funds on Tuesday, White House Press Secretary Karoline Leavitt said that issuing the directive for analyzing federal spending is what the American people elected Donald Trump to do.