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Some are calling this "malicious compliance." That is, the bureaucrats don't like the boss so they look for the most extreme and obnoxious ways to try to follow the general direction given by the boss.
Or, given the legendary vindictiveness of the boss, bureaucrats are being cautious.
The situation seems unambiguous. According to an executive order published today, all federal agencies must pause all activities related to all financial assistance programs (except those paid directly to individuals) to the extent permissible by law. Then they must ensure that the programs are consistent with the new national priorities before continuing.