On Tuesday afternoon, the federal government will implement a freeze on tens of billions of dollars in federal grants. President Donald Trump ordered the stop as part of his larger effort to purge the government of programs and expenditures promoting diversity initiatives, but the suspension will have a wide ranging impact on a host of federally funded programs.
In a memo first obtained by independent journalist Marisa Kabas, Office of Management and Budget (OMB) Acting Director Matthew J. Vaeth wrote 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.”
“Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,” the memo continued, with an exception for “assistance provided directly to individuals,” like Social Security and Medicare.
In the first days of his presidency, Trump has signed several executive orders targeting foreign aid, environmental spending, and federal diversity and inclusion programs, but the OMB’s order represents a power play that will directly affect millions of Americans’ access to publicly funded resources. The order’s vague wording means critical safety net programs that are not structured as direct payments from a government agency to individuals could be affected. Programs like the Supplemental Nutrition Assistance Program (SNAP), which are funded through federal grants but operated at a state level in what is known as a “pass through” grant may be forced to halt payments. Over 60 percent of SNAP participants are families with children. The Children’s Health Insurance Program (CHIP) is also funded via pass-through grants that may render large swaths of beneficiaries vulnerable under the new order. The Trump administration has not clarified if such pass-through grants would be exempt from the directives enforcement. The order issued Tuesday is scant on details, in general.
Some members of Congress have challenged Trump’s ability to carry out such an order, under the argument that it’s the legislative branch that approves grant spending — not the president. “Congress approved these investments and they are not optional, they are the law,” Senate Minority Leader Chuck Schumer (D-N.Y.) wrote on social media. “These grants help communities in red states and blue states and support families, help parents raise kids, and lead to stronger communities.”
In a separate post, Schumer accused the president of “jeopardizing billions upon billions of community grants and financial support that help millions of people across the country.”
“It will mean 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 wrote.
Senate Appropriations Committee Vice Chair Patty Murray (D-Wash.) and House Appropriations Committee Ranking Member Rosa DeLauro (D-Conn.), wrote in a letter to Vaeth that the scope of the order “is breathtaking, unprecedented, and will have devastating consequences across the country.”
“This Administration’s actions will have far-reaching consequences for nearly all federal programs and activities, putting the financial security of our families, our national security, and the success of our country at risk,” the lawmakers wrote.
