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Trump funding freeze could disrupt education, housing, disaster aid

Trump's funding freeze included any money intended "for foreign aid" and for "nongovernmental organizations," among other categories, the Office of Management and Budget, which oversees the federal budget, said.

U.S. President Donald Trump speaks during a House Republican members conference meeting in Trump National Doral resort, in Miami, Florida, U.S. January 27, 2025. / REUTERS/Elizabeth Frantz

President Donald Trump's White House ordered a pause in all federal grants and loans starting on Jan. 28, a sweeping decision that could disrupt education, health care and poverty programs, housing assistance, disaster relief and a host of other initiatives that depend on trillions of federal dollars.

The freeze followed Trump's suspension of foreign aid last week, a move that began cutting off the supply of lifesaving medicines on Jan. 28 to countries around the world that depend on U.S. development assistance.

The Office of Management and Budget, which oversees the federal budget, said in a memo that grants and loans would be put on hold while the administration ensures they are aligned with the Republican president's priorities, including executive orders he signed ending diversity, equity and inclusion efforts.

The memo said Jan. 28's freeze included any money intended "for foreign aid" and for "nongovernmental organizations," among other categories.

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