Federal Assistance Freeze by Trump Sparks Controversy Among Democrats**

A leaked memo reveals President Trump's order to pause federal grants and loans, causing alarm among Democratic lawmakers due to its potential impact on various programs.**

In a surprising move, President Donald Trump has put a stop to federal grants, loans, and other forms of financial assistance according to a leaked memo confirmed by CBS News. The memo was issued by Matthew Vaeth, the acting head of the Office of Management and Budget (OMB), who called for all federal agencies to assess compliance with Trump's newly outlined priorities. Key programs including Medicaid and Social Security are reportedly exempt from these restrictions.

The memo details specific types of aid that are being paused, notably those aimed at foreign assistance, non-governmental organizations, diversity, equity and inclusion initiatives, and climate policies associated with the Green New Deal. Agencies have been tasked with ceasing the issuance of new awards and halting the disbursement of funds linked to existing programs, with a deadline set for 17:00 EST (22:00 GMT) to submit reports on the paused initiatives by February 10.

Democratic leaders have reacted sharply to this directive. Key figures such as Senator Patty Murray and Congresswoman Rosa DeLauro expressed their "extreme alarm" in a letter to the White House, asserting that the scope of the order is unprecedented and could lead to significant challenges for various sectors across the nation. Senate Minority Leader Chuck Schumer echoed their concerns, emphasizing that these investments are mandated by law and will have dire consequences for numerous organizations, educational institutions, and non-profits.

This federal funding freeze follows last week's announcement from the Department of State, which had suspended nearly all foreign assistance due to an ongoing review aimed at reassessing aid effectiveness in accordance with Trump's foreign policy. As the world's largest donor of international aid, the repercussions of these fiscal pauses could be felt globally.

The White House has yet to officially address the leaked memo, stirring anticipation about the future of federal funding amidst increasing political tension.