President Trump and Secretary of State Rubio halted all US government foreign assistance spending on Friday, precipitating a humanitarian aid disaster. Starting on Tuesday, we will see Trump stopping all US government domestic assistance too.
Follow Me on LinkedIn for Real Time Updates
Most Domestic Assistance Stopped
Acting Director of the White House Office of Management and Budget, Matthew J. Vaeth, issued a detailed memo on Monday that requires Federal agencies to:
- Temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.
- Complete a comprehensive analysis of all of their Federal financial assistance programs
- Submit to OMB detailed information on every program, project or activity by February 10
The Office of Management and Budget issued this temporary pause to provide the new Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities.
Their goal is to Make America Healthy Again by:
- Advancing a stronger and safer America,
- Eliminating the financial burden of inflation for citizens
- Unleashing American energy and manufacturing
- Ending “wokeness” and the weaponization of government
- Promoting efficiency in government
- Stopping Marxist equity, transgenderism, and green new deal social engineering policies
Programs affected include financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal. There are exemptions for impact Social Security or Medicare recipients, and any assistance provided directly to individuals.
Why Did Trump Stop Federal Funding?
The OMB says it paused all grants and loans disbursed by the federal government to ensure fiscal responsibility and realignment of spending to reflect the government’s current priorities, which strongly oppose “woke” ideologies like diversity, equity, inclusion, and accessibility (DEIA).
This blanket suspension is designed to review and reshape the U.S. government’s financial assistance landscape to better reflect these priorities.
The sudden pause of USG funding will disrupt services and programs critical to public welfare, especially when many Americans are still grappling with economic recovery. This will halting economic process across the country and forcing organizations to seek alternative funding sources or cut services.
What Impact on International Development?
The suspension of domestic federal grants is likely to exacerbate the challenges for nonprofit organizations based in the USA that were already struggling due to previous stop work orders on international programs. These entities depend on a combination of domestic and international government funding to operate effectively.
With both streams halted, they will face severe operational and financial constraints. This will lead to delays in project implementation, inability to meet contractual obligations, and potential downsizing or cessation of critical services that affect vulnerable populations both domestically and globally.
What Are You Seeing? Doing?
The situation will be particularly dire for smaller domestic NGOs who often lack the resources to absorb such a sudden shock and are most vulnerable to the “subcontracting squeeze” as larger organizations cut back.
- What is happening in your domestic programs? At your organization?
- How are small organizations impacted? Or programs offering lifesaving support?
Please tell us in the comments. You can remain anonymous – use a fake name and email address as you tell us what is really happening. Bear witness to this tragedy. The impacts need to be known.
