‘Waste of taxpayer dollars’: Donald Trump orders to pause all federal grants, loans

The freeze, which took effect at 5 pm ET Tuesday, excludes Social Security, Medicare, and direct assistance to individuals, but the impact on healthcare programs for veterans and low-income individuals remains unclear. Agencies have until February 10 to provide detailed reports on suspended programs.

The memo said the freeze included any money intended “for foreign aid” and for “nongovernmental organizations,” among other categories.

Nonprofit leaders expressed alarm over the pause with Diane Yentel, president of the National Council of Nonprofits, warned it could halt critical services, including childhood cancer research, food assistance, domestic violence shelters, and suicide hotlines. “The impact of even a short pause in funding could be devastating and cost lives,” she said.

Democrats too, quickly condemned the move as unconstitutional. Senate Democratic Leader Chuck Schumer called it a harmful overreach, stating, “It will mean missed payrolls and rent payments and chaos for everything from universities to non-profit charities, state disaster assistance, and aid to the elderly.”

The administration defends the decision as fulfilling campaign promises, with Republican Representative Tom Emmer stating, “He was elected to shake up the status quo. That is what he’s going to do.”

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