The Environmental Protection Agency (EPA) has halted disbursement of federal aid as part of an order from the White House Office of Management and Budget (OMB) to halt loan and grant distribution, officials with the agency confirmed to The Hill Tuesday.
In a memo issued Monday, OMB imposed a deadline of 5:00 P.M. on Tuesday to pause all financial assistance spending while it assesses their alignment with President Trump’s policy agenda. OMB Acting Director Matthew Vaeth directed all federal agencies to freeze “all activities related to obligation or disbursement of all federal financial assistance” to the “extent admissible by applicable law.”
“EPA is working diligently to implement the Office of Management and Budget’s memorandum, Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs, to align Federal spending and action with the will of the American people as expressed through President Trump’s priorities,” an EPA spokesperson said in an email to The Hill. “The agency is temporarily pausing all activities related to the obligation or disbursement of EPA Federal financial assistance at this time. EPA is continuing to work with OMB as they review processes, policies, and programs, as required by the memorandum.”
Potentially affected EPA activities include the agency’s Water Infrastructure Finance and Innovation Act (WIFIA) loan program, as well as grant programs relating to air pollution, children’s health and competitive grant funding through the Office of Land and Emergency Management.
The memo prompted widespread confusion as state Medicaid programs reported loss of access to federal payment portals. Democratic lawmakers have denounced the move as illegal under federal laws requiring the executive branch to spend money allocated by acts of Congress. Senate Appropriations Committee Chair Susan Collins (R-Me.) also criticized the memo Tuesday, saying “this is far too sweeping and will have an adverse effect on the delivery of services and programs.”
