The Key Programs Trump’s Budget Freeze Just Wrecked
Donald Trump ordered a widespread pause on federal grans and loans.
The Trump administration’s budget freeze on federal grants and loans will affect more than 2,600 accounts across the government. Beginning at 5 p.m. on Tuesday, tens of billions of dollars directed to the likes of the Pentagon, the Department of Health and Human Services, the Institute of Museum and Library Services, FEMA, and thousands of other agencies will be put on pause until the government falls in line with Trump’s agenda.
In a memo issued Monday, acting director of the Office of Management and Budget Matthew Vaeth said that the funds—which Congress appropriates—would be frozen until the White House could ensure that each agency was aligned with Trump’s recent executive orders and had ended operations related to foreign aid, DEI initiatives, “woke gender ideology,” and the Green New Deal.
“This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities,” Vaeth wrote.
Agencies will be required to answer specific questions and submit their responses to OMB in order to regain their funding. Some of those questions include prompts about whether the programs promote or support “environmental justice,” abortion, or “gender ideology,” or provide services to “illegal aliens,” according to a spreadsheet obtained by RollCall.
Essential services across the nation will, more or less, be paralyzed by the probe. Among the several thousand funding programs that Trump’s White House is investigating are funding through the Department of Health and Human Services for rural and teaching hospitals; grants for veteran suicide prevention efforts; NASA’s space operations; Justice Department funding for victims of mass violence and terrorist attacks; and Pentagon research into chemical, biological, and radiological warfare. Subsidies for housing assistance, disaster relief, and educational programs are also threatened.
But the spontaneous mass spending pause has also left organizations and programs dependent on federal funding confused about whether they’re implicated.
By Tuesday at noon, multiple states reported that they had been locked out of their Medicaid portals amid the nationwide holdup, according to Hawaii Senator Brian Schatz. And money intended to feed the elderly and infirm also appears jeopardized, leaving groups such as Meals on Wheels unsure about when they’ll be able to deliver food again.
“The uncertainty right now is creating chaos for local Meals on Wheels providers not knowing whether they should be serving meals today,” a Meals on Wheels America spokesperson told HuffPost’s Arthur Delaney. “Which unfortunately means seniors will panic not knowing where their next meals will come from.”
And the chaos seemingly extends to people within Trump’s immediate orbit. In response to concerns about Meals on Wheels, senior administration officials told Delaney that “no benefits to individuals are affected by this—funding specifically that violates the president’s EOs.” The meal program isn’t a direct benefit, though, but rather a string of grants disseminated through states and local nonprofits.
“They don’t think they’re OK,” Delaney reported.
Trump’s spokespeople have insisted that direct services to people would not be affected, but Connecticut Senator Chris Murphy implored his state’s residents to not believe any such statements. He wrote on X that “the Head Start reimbursement system IS shut down” across the Constitution State.
“Preschools cannot pay staff and will need to start laying off staff very soon and sending little kids home,” Murphy said in response to an updated OMB memo specifying that Pell Grants, Head Start, SNAP, and similar programs weren’t nixed by the directive.
Legal experts and lawmakers alike clamored that the agency’s move to freeze spending from hundreds of agencies overnight—and Trump’s ongoing attempt to forcibly reshape the government—wasn’t just a dangerous and unprecedented attack on the rights of millions of Americans, but one that is blatantly illegal.
“On day one, Trump made crystal clear he has every intention of ignoring federal law—and our Constitution—to block investments that Congress has delivered for communities across the country,” Senator Patty Murray, vice chair of the Senate Appropriations Committee, said in a statement last week following Trump’s executive order foreshadowing the funding freeze. “What’s happening here should be alarming to anyone who cares about the separation of powers clearly laid out in our Constitution. Congress—not the president—has the power of the purse.”
In a statement late Monday, Senate Democratic Leader Chuck Schumer similarly pressed that the executive branch does not have the authority to withhold funding that the legislature had already allocated for the American public.
“Donald Trump’s administration is jeopardizing billions upon billions of community grants and financial support that help millions of people across the country,” Schumer wrote on X. “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.”
A coalition of nonprofits and small businesses filed a lawsuit Tuesday challenging the suspension.
This story has been updated.