Trump White House orders freeze on federal grants, loans
The Trump administration has ordered a temporary freeze on federal grants and loans, potentially affecting 20% of federal spending, while excluding direct aid programs like Social Security and Medicare.
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President Donald Trump's administration has ordered a temporary freeze on federal grants and loans, effective from January 28, 2025. This directive, issued by the Office of Management and Budget (OMB), aims to ensure compliance with Trump's executive orders targeting what the administration describes as "Marxist equity, transgenderism, and green new deal social engineering policies." The memo specifies that the freeze excludes direct aid programs such as Social Security and Medicare. The OMB has the authority to grant exceptions on a case-by-case basis, but the overall impact could be significant, potentially affecting around 20% of federal spending, which amounts to approximately $3 trillion in fiscal 2024. Programs that could be impacted include Medicaid, school meal programs, and various forms of housing assistance. The memo also mandates that federal agencies withdraw previously published award solicitations and cancel awards that conflict with the administration's priorities. Critics, including Senate Minority Leader Chuck Schumer and former Biden budget official Bobby Kogan, have expressed concerns that this freeze could disrupt essential services and lead to legal challenges, arguing that it violates laws restricting presidential impoundment of funds appropriated by Congress.
- Trump administration orders a freeze on federal grants and loans.
- The freeze excludes direct aid programs like Social Security and Medicare.
- Potentially affects 20% of federal spending, impacting critical programs.
- Federal agencies must withdraw award solicitations and cancel conflicting awards.
- Legal challenges are anticipated due to concerns over compliance with federal law.
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3 commentsAnd that's not even getting into that this is, by an ocean, the largest case of illegal executive impounding this nation has ever seen, with downright insane, Orwellian language used as justification and very little actual clarification as to what it actually means. For instance, are Pell grants included? They're for individuals but dispersed by universities. Medicare is safeguarded, but Medicaid?
Just fantastic. Slide and slide.
Not a good time to be a federally funded research and development corporation (NASA JPL, Fermi National Accelerator, Los Alamos, Lawrence Livermore, Sandia, NCAR, Oak Ridge, SLAC, etc)
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