Written by Chris Merkel of the Associated Press
Washington (AP) As President Donald Trump’s administration launches an all-encompassing ideological review of its spending, the White House is halting government grants and loans beginning Tuesday. This is confusing and alarming organizations who depend on Washington for their financial lifeblood.
The decision, according to administration officials, was required to guarantee that all financing conforms with Trump’s executive orders, which aim to reverse progressive advancements in the areas of environmental justice and diversity, equity and inclusion, or DEI, and transgender rights.
Additionally, they stated that federal assistance to individuals, such as food stamps, Medicare, Social Security, and other programs, would not be impacted.
However, the funding freeze might have a significant impact on health care research, education programs, and other activities, potentially disrupting trillions of dollars, at least temporarily. The goal is to stop even grants that have been given but not yet used.
There will soon be court battles, and Democratic Attorney General of New York Letitia James intends to request that a federal court in Manhattan stop the Republican president’s actions.
On social media, she declared, “My office will be taking imminent legal action against this administration’s unconstitutional pause on federal funding.”
Just one day after agencies were notified of the decision, the delay was set to begin at 5 p.m. ET.
Matthew Vaeth, the interim director of the Office of Management and Budget, said that using federal funds to promote Marxist equity, transgenderism, and green new deal social engineering schemes is a waste of tax dollars and does not enhance the daily lives of people we serve.
Since Congress had already approved the funding, Democrats and independent groups quickly denounced the administration, calling its actions arbitrary and unlawful.
Sen. Patty Murray of Washington, the leading Democrat on the Senate Appropriations Committee, stated that the extent of this unlawful activity is unprecedented and could have disastrous effects nationwide. Resources for child care, cancer research, housing, police personnel, opioid addiction treatment, road and bridge reconstruction, and even disaster aid might all come to a standstill.
New York Democrat and Senate Minority Leader Chuck Schumer described it as more turmoil and lawlessness in America.
The White House memo doesn’t specify how broad the delay will be. According to Vaeth, all expenditures must adhere to Trump’s executive directives.
In order to identify programs, projects, and activities that might be involved by any of the President’s executive orders, Vaeth noted that each agency must finish a thorough study of all of their Federal financial assistance programs. Additionally, he added that the delay should be put into effect to the degree that the relevant laws permit.
The memo has left many who depend on the money wondering how they will be impacted. Washington is a center for expenditure that goes to other departments, local governments, organizations, and contractors.
The halt is only the most recent instance of Trump using his influence over the federal government to further his conservative agenda. This time, Trump is delving deeply into the bureaucracy, unlike during his first term when he and many of his inner circle were unfamiliar with Washington.
According to Paul Light, a federal government expert and professor emeritus of public service at New York University, they are advancing the president’s agenda from the bottom up.
He said that Trump’s strategy has risks, particularly given how dependent so many voters are on Washington.
You can’t keep causing trouble. It’s your responsibility.
At 1 p.m. ET, she will have her first briefing with White House press secretary Karoline Leavitt.
This report was written by Lisa Mascaro, Michael Sisak, and Collin Binkley of the Associated Press.