The budget office of President Trump has instructed all federal agencies temporarily to halt the disbursement “of all federal financial assistance”, excluding Social Security and Medicare.

The order could affect tens or even hundreds of millions of dollars of payments to state and local governments for infrastructure projects, climate initiatives and foreign aid.

Washington and state officials are confused by the move as they try to determine how to handle the pause.

In a two-page letter, Matthew J. Vaeth (acting director of the Office of Management and Budget) announced that the temporary freeze would begin on Tuesday, at 5 pm. The memo does not specify how funding will be halted.

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The memo stated that “Financial Assistance should be dedicated towards advancing Administration Priorities, focusing tax dollars to advance a safer and stronger America, eliminating the financial burden for citizens of inflation, unleashing American manufacturing and energy, ending the ‘wokeness,’ and weaponization of the government, promoting government efficiency, and Making America Health Again”,

It said that using Federal resources to promote Marxist equity policies, transgenderism and green new deals social engineering policies was a waste of tax dollars, which did not improve the lives of those it served.

The memo stated that Medicare and Social Security would not be affected. The memo also stated that exceptions may be made “on a case-by-case” basis.

The President’s policy requires federal agencies to “identify, review and evaluate all Federal Financial Assistance Programs and Supporting Activities consistent with his policies and requirements.”

The federal assistance programs of each agency must be analyzed to determine “anything that may be implicated” by Mr. Trump’s Executive Orders, such as “financial aid for foreign assistance, non-governmental organizations, DEI and woke gender ideologies, along with the green new Deal.”

The memo states that agencies should also appoint a “senior appointee” to “ensure Federal financial assistance is in line with Administration priorities,” and review any announcements and make the appropriate changes, “cancel existing awards which are not in line with Administration priorities,” and ensure oversight of programs and recipients who “underperform.”

Reports are due on February 10.

The memo states that the pause gives the Trump administration the time to review the programs, and determine whether funding is “consistent” with the law and President’s priorities.

Charles E. Schumer (New York Democrat) is the Senate Minority leader. He slammed the announcement, saying he didn’t believe that the Trump administration claimed the pause was only temporary.

“Donald Trump should direct his administration immediately to reverse the course and the money from the taxpayers should be distributed to people. These investments were approved by Congress and are not optional. “They are the law”, Mr. Schumer said.