Trump administration faces lawsuit over pause on federal grants and loans

Memo says social security and Medicare are excluded but congressional Democrats express ‘extreme alarm’

Donald Trump has ordered a pause in all grants and loans disbursed by the federal government, potentially upending programs relied upon by millions of Americans while also quickly earning his second presidential administration a lawsuit.

In a two-page internal memo, Matthew Vaeth, Trump’s acting head of the office of management and budget (OMB), instructed all federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance”.

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