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On January 27, 2025, the Office of Management and Budget (OMB), an office of the Executive Office of the President of the United States, ordered a pause to the disbursement of federal grants and loans, to take effect the following day. Acting director Matthew Vaeth characterized the order as necessary to prevent funding for diversity, equity, and inclusion (DEI) programs and woke ideals. Although the exact extent was initially unclear, the memo exempted federal assistance to individuals from the pause, including programs such as Social Security and Medicare. Despite this, reimbursements for programs such as Medicaid and Head Start were inaccessible to many on January 28. The OMB released a second memo clarifying the order, saying that it was necessary to implement President Donald Trump's recent executive orders.
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