President Trump's top budget office has directed agencies to pause federal loans and grants so the administration can review them.

The Trump administration has withdrawn a memo that caused significant issues by canceling federal loans and grants—though a spokesperson clarified that this does not mean the decision itself has been reversed.

A White House order to freeze federal grants reflects a theory of presidential power that Donald Trump clearly endorsed during his 2024 campaign. The approach was further outlined in the Project 2025 governing treatise that candidate Trump furiously denied was a blueprint for his second administration.

The Trump administration late Monday directed federal agencies to pause the disbursement of loans and grants while the government conducts a review to ensure spending aligns with President Trump’s

Wisconsin is one of nearly two dozen states joining a lawsuit to prevent the pause of federal grants and loans, Gov. Tony Evers and Attorney General Josh Kaul announced Tuesday. The lawsuit said the move would jeopardize federal benefits and investments for health and childcare services,

The White House’s Office of Management and Budget issued a memo ordering a temporary halt to “all federal financial assistance,” potentially paralyzing a vast swath of federal programs.

A federal judge has issued an administrative stay, pausing the start date of the Trump administration’s federal funding freeze until Monday. The freeze was scheduled to take effect Tuesday at 5 p.m. ET.

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