The decision by the administration of U.S. President Donald Trump to freeze federal funding for various grants and loans is a temporary measure necessary to verify how funds are being spent. This statement was made by White House Press Secretary Caroline Levitt.
"This is a temporary pause. The budget office is reviewing federal funding that has been allocated. [...] Over the past four years, we have seen the Biden administration spend money like drunken sailors. This is one of the reasons why we experienced an inflation crisis," she stated during a briefing.
Levitt emphasized that the decision to suspend funding is a "very responsible step":
"This administration is committed to ensuring that every penny is accounted for honestly," she added.
At the same time, Levitt stressed that social assistance to Americans, medical aid, food assistance, and support provided directly to individuals will not be suspended.
Suspension of U.S. Aid Program Funding
The White House has halted all federal grant and loan disbursements, and the team of the new U.S. President Donald Trump has initiated a comprehensive review of internal budget expenditures.
Previously, Trump had paused funding for foreign aid programs for 90 days, particularly under the USAID program, which implements several projects in Ukraine.
Deputy Head of the President's Office Iryna Vereshchuk, commenting on this situation, stated that the suspension of USAID funding is understandably concerning, but this is "neither the first nor the last challenge we must overcome." She added that substantive consultations with American partners will begin shortly to expedite the continuation of funding for humanitarian response projects in Ukraine.