CNN ONLINE

The White House budget office has ordered a pause on all federal grants and loans, according to an internal memorandum sent Monday, potentially impacting trillions in government spending and halting public programmes that affect millions of Americans.

Federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” White House Office of Management and Budget acting director Matthew Vaeth said in the memorandum, a copy of which was obtained by CNN. The pause also blocks the issuance of new grants.

The memo specifies that the pause will not affect Social Security or Medicare benefits, nor does it include “assistance provided directly to individuals.”

The freeze on federal assistance is slated to take effect at 5:00 pm yesterday. It marks the latest move by the Trump administration to exert control over federal funding, even that which has already been allocated by Congress.