Trump administration orders federal funding freeze on all public loans, grants and extra help
A memo from the White Home finances workplace is looking for a spending freeze on federal help by 5 p.m. Tuesday, which might have an effect on every thing from help to nonprofits, universities, small enterprise loans and state and native authorities grants.
The freeze might have wide-ranging implications, with the White Home noting that $3 trillion was spent in 2024 on federal help packages.
“This memorandum requires Federal companies to establish and assessment all Federal monetary help packages and supporting actions according to the President’s insurance policies and necessities,” the memo says.
The White Home has not but commented on the memo, which was leaked Monday evening. CBS Information has confirmed its authenticity.
The Monday evening memo from the Workplace of Administration and Price range is directing federal companies to evaluate compliance with President Trump’s government orders — particularly focusing on “DEI, woke gender ideology and the Inexperienced New Deal.” It doesn’t give specifics on what these insurance policies check with, particularly because the Inexperienced New Deal was by no means signed into legislation.
“The usage of Federal assets to advance Marxist fairness, transgenderism, and inexperienced new deal social engineering insurance policies is a waste of taxpayer {dollars} that doesn’t enhance the day-to-day lives of these we serve,” the memo says.
The White Home memo mentioned it won’t have an effect on Medicare or Social Safety advantages.
Democrats had been already on the offensive on Tuesday morning, with Senate Minority Chief Chuck Schumer criticizing the transfer’s “lawlessness and chaos” and saying it’s “holding up nearly all important funds that help packages in each group throughout the nation.”
“Congress permitted these investments and they aren’t elective; they’re the legislation,” Schumer mentioned in a press release.
Schumer famous that this momentary freeze might have an effect on catastrophe help, help to aged and faculty lunch packages.
Diane Yentel, the president and CEO of the Nationwide Council of Nonprofits, issued a press release on social media calling the order a “potential 5-alarm hearth for nonprofits.”
“From pausing analysis on cures for childhood most cancers to closing homeless shelters, halting meals help, decreasing security from home violence, and shutting down suicide hotlines, the affect of even a brief pause in funding could possibly be devastating and value lives,” Yentel mentioned. “This order might decimate 1000’s of organizations and go away neighbors with out the providers they want.”
The memo is more likely to immediate authorized challenges from entities who had been set to obtain the now-frozen funds, and so they might come shortly. Orders from decrease courts directing companies to show the spigot again on whereas authorized proceedings proceed might ultimately lead the Justice Division to hunt emergency reduction from the Supreme Court docket.
Critics of the newest motion from the Trump administration have argued that the finances workplace’s transfer to quickly withhold federal funds violates the Impoundment Management Act, a 1974 legislation that lays out the framework for the president’s skill to freeze sure funds appropriated by Congress.
However Russ Vought, Mr. Trump’s decide to guide the Workplace of Administration and Price range, instructed the Senate panel holding his affirmation listening to final week that the president believes the Impoundment Management Act is unconstitutional, and mentioned he agrees with that evaluation.
