Trump Administration Orders Temporary Federal Funding Pause, City Officials Scramble to Evaluate

President Donald J. Trump has issued an executive order directing federal agencies to temporarily halt all activities related to federal financial assistance programs, including grants, loans, and other forms of aid, to allow for a comprehensive review and realignment of spending priorities.

According to a copy of that executive order received by the City of Pasadena on Monday, the pause goes into effect at 5 p.m. today. The memorandum was issued by Matthew J. Vaeth, Acting Director, Office of Management and Budget (OMB).

City officials are still attempting to ascertain how the pause will impact City funding.

The move comes as part of the administration’s efforts to align federal resources with the President’s policy goals, which include bolstering American energy, promoting economic growth, and countering what Trump has characterized as “woke” and “radical” government programs.

The City does receive money from HUD for housing via grants to Pasadena, California through programs like the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and Home Enhancement Loan Program (HELP).
Several nonprofits have already filed a lawsuit. According to CNN, the president can pause the funding, but he cannot cancel Congressional funding.

The temporary pause does not impact mandatory programs such as Social Security or Medicare, nor does it affect legally mandated deadlines for certain assistance programs.

The pause will not impact FEMA payments being made to local residents impacted by the Eaton Fire.

The pause could impact programs aimed at resolving food insecurity like Meals on Wheels, which is used by countless seniors in the area.

According to CNN, government programs under review, include emergency grain storage assistance for farmers, the Head Start program for preschool education, cancer center support grants.

Exceptions to the pause may be granted on a case-by-case basis for specific program needs.

“Financial assistance should be dedicated to advancing administration priorities, focusing taxpayer dollars to advance 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, and Making America Healthy Again,” according to the memorandum. “The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”

Agencies will be forced to pause the issuance of new awards, disbursement of funds under open awards, and other related activities that could conflict with the President’s directives. Federal agencies are also instructed to identify programs that may be implicated by executive orders issued by President Trump, such as those related to foreign aid, diversity, equity, and inclusion (DEI) initiatives, gender ideology, and the Green New Deal.

“In Fiscal Year 2024, the federal government spent nearly $10 trillion, with over $3 trillion allocated to financial assistance programs,” according to the memo. “This review ensures that taxpayer dollars are being used efficiently to fulfill the priorities of the American people, focusing on strengthening the nation and eliminating wasteful spending.”

The Office of Management and Budget (OMB) has instructed all federal agencies to submit detailed information about affected programs no later than February 10. Agencies are tasked with reviewing pending financial assistance announcements and modifying or withdrawing those that conflict with the administration’s agenda.
This is a breaking story, Pasadena Now will have more information as it becomes available.