BY MAUREEN N. MARATITA and PAULY SUBA
Journal Staff
The Executive Office of the President of the Unites States has directed federal agencies to temporarily halt all activities related to grants, loans, and other financial assistance programs as part of a sweeping review to ensure taxpayer dollars align with President Donald J. Trump’s policy priorities.
In a memorandum issued on Jan. 27, by Matthew J. Vaeth, acting director of the Office of Management and Budget (OMB), agencies were instructed to pause the issuance of new awards, disbursement of funds, and other related actions effective January 28, 2025, at 5:00 PM. The move comes as the administration seeks to redirect federal spending toward initiatives that advance what it calls "a stronger and safer America."
The memo specifically targets programs tied to diversity, equity, and inclusion (DEI) initiatives, gender ideology, and environmental policies such as the Green New Deal, which the administration describes as "a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve."
U.S. Senate Minority Leader Chuck E. Schumer criticized the decision, calling it a "dagger at the heart of the average American family."
"Without a shred of warning, the Trump administration announced a halt to virtually all federal funds across the country," Schumer said. "In an instant, Donald Trump has shut off billions, perhaps trillions, of dollars that directly support states, cities, towns, schools, hospitals, small businesses, and most of all, American families."
Schumer emphasized that the pause could affect programs like disaster assistance, local law enforcement, rural hospitals, aid to the elderly, and food for people in need. "It is just outrageous," he said.
The impact is already being felt in Guam, where officials are scrambling to assess the potential fallout. Stephanie G. Flores, administrator of the Guam State Clearinghouse, confirmed that the memorandum was received Monday morning and has been shared with agency directors for review.
"We are actively assessing this situation to determine the immediate and long-term impacts it will have on our agencies and the delivery of services to the public," Flores said. She said that one program, a small grant to Guam Community College through USAID, has already been affected.
“I want to assure our people that as of now, everything remains status quo,” Leon Guerrero said in a statement.
“I have convened a meeting with members of my fiscal team and directors of key agencies that could be impacted, including public health, behavioral health, EPA, the Department of Agriculture, and GMH,” she said. “All of our agencies are conducting a thorough review of federal programs to determine which are impacted by the funding freeze and which are not.”
Leon Guerrero emphasized that essential programs such as Medicaid, SNAP, childcare assistance, and WIC are not included in the funding pause. “Other grants that directly impact Americans are not included in this executive order, meaning critical services will continue without disruption,” she said.
While the situation remains fluid, the governor said her administration is in close contact with federal agencies. “We will provide timely updates as more information becomes available, and I ask the people of Guam to remain calm as we conduct our assessment,” she said.
The U.S. Department of Defense is also reviewing the Office of Management and Budget memorandum, it said in a Jan. 29 release, CHamoru Standard Time.
DoD said, “As directed by the memorandum, the Department will expeditiously analyze its financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President's executive orders.”
In the meantime, and as directed by OMB, DoD said it will “temporarily pause activities related to the obligation or disbursement of financial assistance, to the extent permissible under applicable law.”
The good news is that military construction will not be affected.
The scope of the memo does not include contracts. “… the Department of Defense has not paused contract awards. The Department continues to award new contracts to fulfill validated mission needs,” the release said. While it was not of any qualifying work, DoD said, “… it is possible that activities may be paused if they are determined to fall within the bounds of the guidance.”
Several local leaders have responded to the memorandum pausing federal programs, sharing insights on how it could directly impact Guam during interviews on the journal’s sister radio station, Wave 105.
Lt. Gov. Joshua F. Tenorio described the scope of the pause as "quite extensive," with programs supporting homeless services, food assistance, STEM education, and domestic violence victims potentially on the chopping block.
"The president isn’t doing anything that he didn’t say he was going to do," Tenorio said. "We have to be prepared for a big change coming. We’re going to survive the changes, but people’s expectations are definitely going to be challenged at this time."
Tenorio added that programs like the Emergency Food Assistance Program (TFAP) and housing assistance for vulnerable populations are among those under review. "If you’re in need, if you’re a minority and you receive some [assistance], it is a bad day," he said.
Congressman James C. Moylan sought to reassure residents that mandatory programs like Medicaid, Social Security, and SNAP benefits are exempt from the pause. "It’s clear to us that nothing in this directive should be construed to impact Medicare or Social Security benefits," Moylan said. "For now, it’s a two-week pause for these agencies to come back to the president with recommendations on how to align funding with his agenda."
However, Moylan acknowledged that programs tied to diversity, equity, and inclusion initiatives, gender ideology, and environmental policies like the Green New Deal are explicitly targeted. He said, "It’s more on the green ideas of Biden, the DEI programs, things going off for foreign countries."
Dr. K. Erik Swanson, superintendent of the Guam Department of Education said a temporary federal funding pause is not expected to impact major education programs on the island.
“Oftentimes, people who make decisions from the 50,000-foot level don’t have an idea of what the downstream effect is,” Swanson said.
Swanson, who is part of the national Council of Chief State School Officers, shared information from his counterparts across the U.S. “As of noon Eastern time today, our best understanding is that the Office of Budget Memo ordering federal agencies to temporarily pause activities related to obligations and disbursement of federal financial assistance will not impact federal formula funds that have already been obligated and awarded, and ours all have,” he said.
He noted that key funding sources for GDOE, such as the Elementary and Secondary Education Act (ESEA), the Individuals with Disabilities Education Act (IDEA), and other federal education programs, should be exempt from the pause.
However, federal agencies are still working on providing further guidance. “The departments are aware they need to provide clarity to state agencies, so they’re still working on this, and so are we,” Swanson said. “Our grant managers in D.C. that we work with on a regular basis have posed the questions, and I’m waiting for a response.”
Senator Shawn Gumataotao, chairman of Guam’s public safety and emergency management committee, urged vigilance as the review unfolds. "The president has very broad powers in terms of his role as the head of the executive branch," Gumataotao said.
“My role, specifically to the committees that I oversee, is looking at its impact to our public safety agencies,” Gumataotao said. “It could be people, it could be ongoing projects, it could be facilities, or it could be active procurements.”
Gumataotao also highlighted that while some areas of government operations might benefit from streamlining, other federal programs need careful oversight. “We have ATF, we have the U.S. Marshals Service, we have the U.S. District Court, we have the State Department’s Comm Center, we have the National Weather Service… any link to the delivery of direct services with our government, those are the ones that have me just a little more concerned.”
As discussions continue, Gumataotao said policymakers must remain vigilant. “If it comes to it, we may have to adjust,” he said. “But I think that’s something that I think we all, as an American community, should be watching very, very closely.”
As local agencies work to comply with the directive, Lt. Gov Joshua Tenorio wanted to ensure the people of Guam that the administration will continue to work with Moylan to safeguard and protect these programs that could be affected. He said, “Our government exists to help people," Tenorio said. "We’ll fight for them and figure out how to put their interests within this new reality we’re all experiencing together." mbj