Trump Freeze on All Federal Grants Is His Most Violent Power Grab Yet
Trump’s freeze on all federal grants and loans could affect trillions of dollars—including funding already approved by Congress.
Trump has ordered a far-reaching pause on all federal loans and grants, putting multiple organizations in jeopardy and causing widespread confusion throughout the federal government.
Office of Management and Budget Director Matthew J. Vaeth issued a two-page memo Monday stating that federal agencies need to “temporarily pause all activities related to obligation or disbursement of all federal financial assistance,” and any other programs that included “D.E.I., woke gender ideology and the Green New Deal.” The funding pause starts on Tuesday and will go through February. The rest of the details are unclear.
“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,” Vaeth continued in his memo.
But the Green New Deal was never an actual law, and how much federal funding is actually going toward “transgenderism”? The budget freeze is apparently making exceptions for people receiving “personal assistance,” but who falls under that umbrella is also up in the air. Will farmers and small-business owners be shut out of federal funding now too?
Perhaps most troubling, the order seems to violate the impoundment law, which prevents presidents from withholding funding already approved by Congress.
“This order is a potential five-alarm fire for nonprofit organizations and the people and communities they serve,” said Diane Yentel, the chief executive of the National Council of Nonprofits.
“From pausing research on cures for childhood cancer to halting food assistance, safety from domestic violence, and closing suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives,” she continued. “This order could decimate thousands of organizations and leave neighbors without the services they need.”