Economists warn Donald Trump’s federal grant freeze could plunge US into recession
Starting Tuesday, the White House has paused federal grants and loans as the Trump administration reviews spending to align with the president’s executive orders.
These directives aim to revise policies related to transgender rights, environmental justice, and diversity, equity, and inclusion (DEI). Federal agencies have been instructed to assess their financial aid programs to identify those that may be impacted.
The temporary pause is intended to reallocate federal funds in line with Donald Trump’s policy priorities.
Dr. Josh Bivens, chief economist and research director at the Economic Policy Institute, criticized the decision, calling it “reckless” and warning that it could lead to a deep, long-term recession for the country.
(QG - Newsweek / Picture: © Pixabay)