President Donald Trump is pausing federal grants and loans as part of his sweeping review of government spending.
The decision could cause disruption in healthcare research, education programs and other initiatives.
Medicare and Social Security will not be affected, according to the memo.
There was no explanation on whether the pause would affect Medicaid, food stamps, disaster assistance, healthcare research, education programs and more.
States on average receive about 30% of their revenues from the federal government, according to Federal Funds Information for States. The largest grant program is Medicaid, which provides health care for lower-income children and adults. It’s unclear whether the Trump administration’s pause will interrupt the flow of Medicaid reimbursement funds to states.
The Education Department said the pause doesn’t apply to grants received by individuals, including the 40 million Americans with federal student loans and 7 million with Pell Grants.
