The White House is withholding $289 million [1] in congressional appropriations intended for small-business loans.
This freeze puts hundreds of millions of dollars in limbo, potentially impacting small business owners who relied on the funding for growth and operations.
The hold follows an executive order issued in 2022 [1], which eliminated the program. The administration has targeted the initiative as part of a broader effort to remove what it describes as ideological influence from government spending.
Donald Trump said the program was "woke" and promoted "gender extremism" and "climate radicalism" [3].
While some reports describe the total as almost $300 million [2], the specific amount identified in the hold is $289 million [1]. The funds were previously approved by Congress, but the executive branch has declined to release them to the designated recipients.
Small business advocates have raised concerns that the withholding of these funds bypasses congressional intent. The administration said the executive order provides the necessary authority to stop the disbursement of funds to programs that do not align with current policy goals.
The conflict highlights a tension between legislative appropriations and executive authority, specifically regarding how the White House can redefine the eligibility of programs after they have been funded by lawmakers.
“The White House is withholding $289 million in congressional appropriations intended for small-business loans.”
This action represents a significant clash between the executive and legislative branches over the 'power of the purse.' By using an executive order to block funds already appropriated by Congress, the administration is testing the limits of its authority to defund specific policy initiatives based on ideological grounds, potentially creating a precedent for how future administrations handle congressional spending.
