White House sets record straight about impact of Trump’s federal funding freeze


Following the temporary freeze on federal assistance, ordered by the Trump administration’s Office of Management and Budget (OMB), Americans may be wondering if the freeze will impact them.

In her first official press briefing Tuesday afternoon, White House press secretary Karoline Leavitt clarified that the federal grants and loans pause will not impact individual assistance going directly to Americans.

The OMB confirmed the freeze does not apply to student loans and Pell Grants, as the order clearly states financial assistance to “individuals” is exempt.

The pause, which will take effect at 5 p.m. Tuesday and remain in effect pending a review by the Trump administration, will also not impact Social Security, food stamps, or Medicare and welfare benefits, Leavitt confirmed.

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White House press secretary Karoline Leavitt

White House press secretary Karoline Leavitt speaks at the daily briefing at the White House in Washington on Tuesday. (AP / AP Images)

FOX Business previously reported the pause is limited to programs, projects and activities that may be impacted by President Donald Trump’s executive orders.

Some of those programs include diversity, equity and inclusion (DEI), the Green New Deal, and funding nongovernmental organizations that contradict the national interest.

Karoline Leavitt Holds First White House Press Briefing

Karoline Leavitt, White House press secretary, during a news conference in the James S. Brady Press Briefing Room of the White House in Washington, DC, on Tuesday, Jan. 28, 2025. ( Samuel Corum/Politico/Bloomberg via Getty Images / Getty Images)

After agencies complete a comprehensive analysis of their federal financial assistance programs, which will be required by Feb. 10, they will be reviewed for consistency with the president’s priorities.

The memo noted the federal government spent more than $3 trillion on federal assistance in the 2024 fiscal year, according to previous reporting.

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Karoline Leavitt wearing a pink blazer

White House press secretary Karoline Leavitt clarified what will be impacted by President Donald Trump’s freeze on federal assistance.  (Chip Somodevilla/Getty Images / Getty Images)

Senate Minority Leader Chuck Schumer, D-N.Y., told The Wall Street Journal that the freeze “will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities, state disaster assistance, local law enforcement, aid to the elderly, and food for those in need.”

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FOX Business requested comment from Schumer following Leavitt’s remarks, but did not immediately receive a response.

The pause could be as short as a day, White House officials told FOX Business. Agencies can also request exemptions on a case-by-case basis.

Fox News Digital’s Danielle Wallace contributed to this story.


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