In a memorandum issued by the Office of Management and Budget's acting director, Matthew Vaeth, the Trump administration said it would halt "all activities related to obligation or disbursement of all Federal financial assistance" that could be impacted by the President's executive orders, singling out foreign aid, nongovernmental organizations, diversity, equity, and inclusion programs, "woke gender ideology," and environmental protection.

In 2024, North Carolina's state government received $32.6 billion in federal funding, including more than $3 billion in federal disaster relief that largely addressed the debilitating impact of Hurricane Helene " representing 43.2% of the state's total revenue last year. That figure does not include the billions in federal grants and loans that boost the private sector, providing critical funding to hospitals, private universities, and North Carolina businesses " particularly those depending on loans to survive the Helene recovery.