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White House Orders Agencies to Detail Federal Spending to 14 Democratic-Led States and D.C.

The budget office describes the directive as a fraud-focused data exercise that does not itself withhold money.

Overview

  • An OMB memo dated Jan. 20 directs nearly all federal agencies, excluding Defense and Veterans Affairs, to compile detailed data on grants, loans, contracts and other awards for fiscal years 2025–2026 and projected 2027.
  • Agencies must report by Jan. 28 on funding to California, Colorado, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, Washington state and the District of Columbia.
  • The request covers money sent to state and local governments, institutions of higher education and nonprofit organizations, with agencies told they may need to provide award- or beneficiary-level details.
  • The administration ties the review to fraud concerns centered in Minnesota and to President Trump’s stated plan to stop payments to sanctuary jurisdictions beginning Feb. 1.
  • The directive follows earlier funding freezes that prompted lawsuits and court limits, and OMB emphasizes this step gathers data only and does not suspend payments.