US President Donald Trump has paused grants, loans and other federal assistance, according to a leaked government memo verified by the BBC’s US partner, CBS News.
The two-page memo, from the acting head of the White House budget office, instructs agencies to “temporarily pause all activities related to obligations or disbursement of all Federal financial assistance”.
Much about the order, which goes into effect on Tuesday afternoon, and its scope remain unclear, sowing widespread confusion.
The directive could paralyse billions of dollars meant for federal programmes, from disaster relief to cancer research, though Medicare and social security benefits will not be affected.
Democrats have assailed the freeze, saying it will bring chaos and harm to millions of Americans.
In a letter to the White House, top Democratics expressed “extreme alarm”.
“The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country,” wrote Washington Senator Patty Murray and Connecticut Congresswoman Rosa DeLauro.
“We write today to urge you in the strongest possible terms to uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law.”
In the memo, which comes days after the US halted nearly all foreign aid, the acting head of the Office of Management and Budget (OMB) Matthew Vaeth called on government agencies to ensure spending is consistent with Trump’s priorities.
Federal agencies must “temporarily pause all activities related to obligation or disbursement of all federal financial assistance,” and any other programs that included “DEI, woke gender ideology and the Green New Deal,” Vaeth wrote.
Vaeth suggested that the pause would last until at least mid-February, asking agencies to provide a detailed report on the programmes that have been affected by 10 February.
He specifies that Medicare and Social Security benefits are not included in the pause. Other programmes through which aid “is received directly by individuals” are also exempt.
But it remains uncertain how much money is involved. The memo suggests that the federal government spent $10tn (£8tn) in fiscal year 2024, more than $3tn of which went to federal financial assistance. But the source of those numbers is unclear. The nonpartisan Congressional Budget Office reported that the government spent $6.7tn that year.
The White House has not yet commented officially on the leaked document.
Nonprofit groups have responded in distress.
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“This order is a potential five-alarm fire for nonprofit organizations and the people and communities they serve,” Diane Yentel, the chief executive of the National Council of Nonprofits, said in a statement.
“From pausing research on cures for childhood cancer to halting food assistance, safety from domestic violence and closing suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives,” she added.
The move follows last week’s news that the Department of State had issued a halt to nearly all existing foreign assistance and paused new aid, according to an internal memo sent to officials and US embassies abroad.
It appeared to affect everything from development assistance to military aid, making exceptions only for emergency food aid and for military funding for Israel and Egypt.
Trump earlier issued an executive order for a 90-day pause in foreign development assistance pending a review of efficiencies and consistency with his foreign policy.
The US is the world’s biggest international aid donor, having spent $68bn (£66bn) in 2023 according to government figures. The State Department notice appears to affect everything from development assistance to military aid.