OMB issues memo freezing federal grants and loans

OMB Director Russell Vought issued Memo M-25-13 directing every federal agency to pause obligation and disbursement of grants, loans, and other financial assistance tied to "foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal." The freeze took effect January 28 at 5 p.m. and immediately disrupted IRA and Bipartisan Infrastructure Law spending. Lawsuits filed within hours led to a temporary restraining order, and OMB rescinded the memo on January 29 while the White House said the freeze itself remained in force.