Trump sparks chaos with spending, aid freezes

A sudden freeze on federal grants and loans by President Donald Trump's administration has created widespread confusion

Donald Trump rallies congressional Republicans
(Image credit: Joe Raedle / Getty Images)

What happened

The White House budget office Monday ordered all federal agencies to halt the disbursement of grants and loans, a sweeping but confusing directive that challenged the separation of powers and added to the upheaval in Washington after President Donald Trump's first week in office. The State Department paused most foreign aid on Friday. Federal health officials were told Monday to immediately stop all cooperation with the World Health Organization.

Who said what

The scope and legal future of the spending freeze is unclear, Politico said, but it "could affect billions of dollars in grants to state and local governments while causing disruptions to programs that benefit many households."

The unexpected "sudden stoppage" of WHO cooperation could hinder work to stop the spread of viral diseases in Africa and bird flu outbreaks worldwide, The Associated Press said. Doctors and aid workers were told to halt treating people with HIV/AIDS in Africa. The U.S. is "no longer going to blindly dole out money with no return for the American people," State Department spokesperson Tammy Bruce said to NPR.

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What next?

The funding pause, scheduled to begin Tuesday evening, will purportedly last until a review determines if the programs aligned with Trump's policies. But "no one should believe" this is "only temporary," or legal, Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement. "Congress approved these investments and they are not optional; they are the law."

Rafi Schwartz, The Week US

Rafi Schwartz has worked as a politics writer at The Week since 2022, where he covers elections, Congress and the White House. He was previously a contributing writer with Mic focusing largely on politics, a senior writer with Splinter News, a staff writer for Fusion's news lab, and the managing editor of Heeb Magazine, a Jewish life and culture publication. Rafi's work has appeared in Rolling Stone, GOOD and The Forward, among others.