Shorouk Express
The White House is defending President Donald Trump’s pausing of federal loans and grants – even as alarm bells sounded over the potential impacts on everyday Americans.
A federal judge on Tuesday blocked the funding freeze until February 3, but the programs could still be at risk, depending on the results of a court battle.
The Office of Management and Budget distributed a memo Monday ordering federal agencies to pause any federal financial assistance to allow Donald Trump and his administration to review whether that aid is consistent with his policies.
The scope of the “temporary” freeze was not immediately clear. Outside of a few honorable mentions — “financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology and the Green New Deal” — the memo did not spell out specific programs that would be impacted. The order does, however, explicitly exclude Medicare and Social Security benefits from being affected.
Experts warned that a wide range of activities, including nonprofits, food assistance, student loans and scientific research, could be impacted by this order.
At an afternoon briefing, White House Press Secretary Karoline Leavitt stressed people receiving individual assistance directly from the government, such as Social Security, Medicare and food stamps, would not be impacted by the freeze. She then attacked the Green New Deal and “wokeness” in justifying the freeze to make sure federal spending remains in line with executive policies.
“[It] is a responsible measure. Biden’s administration spent money like a drunken sailor,” Leavitt said.
open image in gallery
Leavitt did not directly respond to questions as to other programs that operate with federal grants including Meals on Wheels or other veterans support organizations, would also be affected. Those programs do not provide “individual assistance” but use federal funds provided to care.
“So what does this pause mean? It means no more funding for illegal DEI programs. It means no more funding for the green new scam that has cost American taxpayers 10s of billions of dollars,” she said.
Leavitt added that agencies can contact OMB if they feel that programs that are being affected “are necessary and in line with the President’s agenda.”
A Meals on Wheels spokesperson told the HuffPost: “The uncertainty right now is creating chaos for local Meals on Wheels providers not knowing whether they should be serving meals today. Which unfortunately means seniors will panic not knowing where their next meals will come from.”
An online system that distributes federal money to Head Start providers sent out an email after news of the pause. The email obtained by the HuffPost reads: “Due to Executive Orders regarding potentially unallowable grant payments, PMS [the payment system] is taking additional measures to process payments. Reviews of applicable programs and payments will result in delays and/or rejections of payments.” It’s not clear how many providers received the message.
open image in gallery
Medicaid appears to also have been affected.
Oregon Senator Ron Wyden wrote in a statement on X: “My staff has confirmed reports that Medicaid portals are down in all 50 states following last night’s federal funding freeze. This is a blatant attempt to rip away health insurance from millions of Americans overnight and will get people killed.”
Florida Congressman Maxwell Alejandro Frost also confirmed that the Medicaid portal had been shut down in Florida, noting that there are 3.8 million people in the state who rely on Medicaid.
When asked why there was no notice given to agencies and organizations to prepare, Leavitt pushed back: “There was notice. It was the executive order the president signed.” She then cited the freezes on both federal hiring and foreign aid. “This is incredibly important to ensure that this administration is taking into consideration how hard the American people are working,” she said.
Each federal agency is required to conduct a “comprehensive analysis” of each of its financial assistance programs to determine whether they are implicated by the president’s flurry of executive orders, states the memo from Matthew Vaeth, acting director of OMB.
open image in gallery
Senate Minority Leader Chuck Schumer warned that this order “blatantly disobeys the law.”
“Congress approved these investments and they are not optional, they are the law,” the New York Democrat said in a statement posted to X.
This order will lead to “missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities, state disaster assistance, local law enforcement, aid to the elderly, and food for those in need,” he continued.
On Monday, the top Democrats of the Congressional Appropriations Committees, Connecticut Rep. Rosa DeLauro and Washington Sen. Patty Murray, wrote to Vaeth with “extreme alarm about the Administration’s efforts to undermine Congress’s power of the purse, threaten our national security, and deny resources for states, localities, American families and businesses.”
They called the extent of the order “breathtaking, unprecedented, and will have devastating consequences across the country.”
The Democrats added: “We write today to urge you in the strongest possible terms to uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law.”
open image in gallery
Diane Yentel, President and CEO of the National Council of Nonprofits, also braced for the impacts of the sweeping order.
“This order is a potential 5-alarm fire for nonprofits and the people and communities they serve. From pausing research on cures for childhood cancer to closing homeless shelters, halting food assistance, reducing safety from domestic violence, and shutting down suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives,” Yentel said in a post on X. “This order could decimate thousands of organizations and leave neighbors without the services they need.”
New York Attorney General Letitia James called the White House’s latest move “reckless.”
“This administration’s pause on federal funding is reckless and dangerous. Programs in communities across the entire nation depend on this funding to support our families, and this action is only going to hurt them,” she wrote on X.
Federal agencies must submit the requested information on programs by February 10, according to the memo.
“Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, promoting efficiency in government, and Making America Healthy Again,” the memo stated.
