Trump administration mandates comprehensive halt on federal aid distribution
In a two-page memo, the Office of Management and Budget instructed all federal agencies to halt payments on a temporary basis.
TroibNews 
One week into the Trump administration, efforts to undermine governmental functions are intensifying, shifting financial control further away from Congress.
President Donald Trump’s budget office issued an order on Monday to freeze “all federal financial assistance” that could be impacted by prior executive actions halting funding for various priorities, including domestic infrastructure, energy projects, diversity initiatives, and foreign aid.
A two-page memo obtained by PMG indicated that all federal agencies would be required to temporarily suspend payments, explicitly stating that Social Security and Medicare will remain unaffected.
“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," the memo stated, which was authenticated by three sources.
This directive could potentially disrupt billions in grants to state and local governments and may affect programs that assist U.S. households. However, confusion arose regarding the memo's implementation and the potential for legal challenges.
Although the memo specifies that the funding pause does not include assistance “provided directly to individuals,” it fails to clarify whether funding that first goes to states or organizations before reaching households will be affected.
The memo lacks details on all payments that will be halted, but it mandates federal agencies to “temporarily” cease all federal financial assistance that could fall under Trump’s executive actions. This includes freezing funding tied to the Democrats’ Inflation Reduction Act and the bipartisan infrastructure package from 2021, as well as instituting a 90-day freeze on foreign aid.
Senate Minority Leader Chuck Schumer criticized the announcement, labeling it as “more lawlessness and chaos in America as Donald Trump’s Administration blatantly disobeys the law by holding up virtually all vital funds that support programs in every community across the country.” He added, “They say this is only temporary, but no one should believe that. Donald Trump must direct his Administration to reverse course immediately and the taxpayers’ money should be distributed to the people. Congress approved these investments and they are not optional; they are the law.”
Bobby Kogan, a former White House budget office employee during the Biden administration, described the memo as a “big, broad, illegal” order that contravenes impoundment law, which prohibits presidents from unilaterally withholding funds without Congressional approval.
“This is as bad as we feared it would be,” Kogan remarked. He also has experience as a Democratic aide to the Senate Budget Committee and currently holds a director position at the left-leaning Center for American Progress.
The funding freeze is set to commence at 5 p.m. on Tuesday, a day following the memo's distribution to agencies.
The memo was initially reported by journalist Marisa Kabas.
Contributions to this report were made by Carmen Paun and Adam Cancryn.
James del Carmen for TROIB News
President Donald Trump’s budget office issued an order on Monday to freeze “all federal financial assistance” that could be impacted by prior executive actions halting funding for various priorities, including domestic infrastructure, energy projects, diversity initiatives, and foreign aid.
A two-page memo obtained by PMG indicated that all federal agencies would be required to temporarily suspend payments, explicitly stating that Social Security and Medicare will remain unaffected.
“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," the memo stated, which was authenticated by three sources.
This directive could potentially disrupt billions in grants to state and local governments and may affect programs that assist U.S. households. However, confusion arose regarding the memo's implementation and the potential for legal challenges.
Although the memo specifies that the funding pause does not include assistance “provided directly to individuals,” it fails to clarify whether funding that first goes to states or organizations before reaching households will be affected.
The memo lacks details on all payments that will be halted, but it mandates federal agencies to “temporarily” cease all federal financial assistance that could fall under Trump’s executive actions. This includes freezing funding tied to the Democrats’ Inflation Reduction Act and the bipartisan infrastructure package from 2021, as well as instituting a 90-day freeze on foreign aid.
Senate Minority Leader Chuck Schumer criticized the announcement, labeling it as “more lawlessness and chaos in America as Donald Trump’s Administration blatantly disobeys the law by holding up virtually all vital funds that support programs in every community across the country.” He added, “They say this is only temporary, but no one should believe that. Donald Trump must direct his Administration to reverse course immediately and the taxpayers’ money should be distributed to the people. Congress approved these investments and they are not optional; they are the law.”
Bobby Kogan, a former White House budget office employee during the Biden administration, described the memo as a “big, broad, illegal” order that contravenes impoundment law, which prohibits presidents from unilaterally withholding funds without Congressional approval.
“This is as bad as we feared it would be,” Kogan remarked. He also has experience as a Democratic aide to the Senate Budget Committee and currently holds a director position at the left-leaning Center for American Progress.
The funding freeze is set to commence at 5 p.m. on Tuesday, a day following the memo's distribution to agencies.
The memo was initially reported by journalist Marisa Kabas.
Contributions to this report were made by Carmen Paun and Adam Cancryn.
James del Carmen for TROIB News
Find more stories on the environment and climate change on TROIB/Planet Health
