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Trump admin orders federal funding freeze
A federal judge has temporarily blocked a push from President Donald Trump to pause federal funding while his administration conducts an across-the-board ideological review to uproot progressive initiatives.
A federal judge on Tuesday temporarily blocked a push from President Donald Trump to pause federal funding while his administration conducts an across-the-board ideological review to uproot progressive initiatives.
The Trump administration plan plunged the U.S. government — and states and organizations that rely on federal funding — into panic and confusion and set the stage for a constitutional clash over control of taxpayer money.
States report Medicaid outage amid federal funding drama
A federal judge has temporarily blocked President Donald Trump's freeze on federal grants and loans that could total trillions of dollars.
The order from U.S. District Judge Loren L. AliKhan came minutes before the funding freeze was scheduled to go into effect on Tuesday afternoon. The administrative stay, prompted by a lawsuit brought by nonprofit groups that receive federal funds, lasts until Monday afternoon and applies only to existing programs.
MORE: Medicaid systems down in 20 states including NY after funding freeze
What we know:
Administration officials said the decision to halt loans and grants — a financial lifeline for local governments, schools and nonprofits — was necessary to ensure that spending complies with Trump’s recent blitz of executive orders. The Republican president wants to increase fossil fuel production, remove protections for transgender people and end diversity, equity and inclusion efforts.
But a vaguely worded memo issued by the Office of Management and Budget, combined with incomplete answers from the White House throughout the day, left lawmakers, public officials and average Americans struggling to figure out what programs would be affected by the pause. Even temporary interruptions in funding could cause layoffs or delays in public services.
"This sort of came out of the blue," said David Smith, a spokesperson for the Shawnee Mission School District in Kansas, one of countless districts that receive federal funding. Now they're trying to figure out what it means "based on zero information.
JUMP TO: When does the pause go into effect?
Democrats have described the Trump administration’s decision as capricious and illegal. They argued that the president had no right to unilaterally stop spending money appropriated by Congress."
Here's everything you need to know:
FILE: Money in a tip jar. (Robert Alexander/Getty Images / Getty Images)
Possible programs that would be affected by freeze: List
What we don't know:
The memo has left many reliant on federal aid uncertain about how they will be impacted.
- Health care research will likely be affected.
- Education programs will likely be affected.
- Medicaid could be affected.
- Disaster assistance could be affected.
- SNAP benefits will likely not be affected.
Medicaid
At least 20 states, including New York, were reportedly locked out of their Medicaid reimbursement systems after President Donald Trump's administration announced a federal funding freeze on Tuesday. It is unclear if this is related to the funding freeze.
States on average receive about 30% of their revenues from the federal government, according to Federal Funds Information for States. The largest grant program is Medicaid, which provides health care for lower-income children and adults. But it’s unclear whether the Trump administration’s pause will interrupt the flow of Medicaid reimbursement funds to states.
Read more coverage on Medicaid impacts here.
SNAP benefits
Supplemental Nutrition Assistance Program (SNAP) benefits, or food stamps, will likely not be affected, according to Fox News.
Education grants
The Education Department says the pause doesn’t apply to grants received by individuals, including the 40 million Americans with federal student loans and 7 million with Pell Grants.
This means students relying on federal aid for tuition and other costs won’t face disruptions.
Department officials said they’re still reviewing the effect of the memo.
Infrastructure
Federal funds are crucial for state highway and bridge projects, but state transportation officials are still awaiting guidance from federal authorities.
FAFSA
According to the memo, FAFSA and other student loans will not be directly affected by the directive, as the memo specifies that the pause does not affect "assistance provided directly to individuals."
What is the Office of Management and Budget?
Dig deeper:
The Office of Management and Budget (OMB) oversees the performance of federal agencies and administers the federal budget.
In a recent memo, Vaeth criticized the use of federal resources, saying that "the use of Federal resources to advance Marxist equity, transgenderism, and Green New Deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve."
Who is Matthew Vaeth?
The backstory:
Vaeth emphasized that all spending must comply with President Trump's executive orders, which aim to reverse progressive policies on transgender rights, environmental justice, and diversity, equity, and inclusion (DEI).
Vaeth says "each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders."
It’s unclear how sweeping the pause will be.
What is the Green New Deal?
The Green New Deal, introduced by Rep. Alexandria Ocasio-Cortez and Sen. Edward Markey in 2019, proposes transitioning the U.S. from fossil fuels, reducing greenhouse gas emissions, and creating high-paying clean energy jobs.
When does the pause go into effect?
The pause takes effect at 5 p.m. Eastern on Tuesday.
What they're saying:
Many are calling this an attempt to push Trump's agenda from the bottom up, arguing that there are risks in his approach, particularly given how many voters depend on federal funding.
Sen. Patty Murray of Washington and Rep. Rose DeLauro of Connecticut, on the Senate and House appropriations committees, expressed "extreme alarm" in a letter to Vaeth.
"As leaders of the House and Senate Committees on Appropriations, we write 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.
A briefing with White House press secretary Karoline Leavitt, her first, is scheduled for 1 p.m. ET.