The Trump administration's budget office has initiated a comprehensive freeze on all federal financial assistance potentially targeted under previous executive orders. The Office of Management and Budget (OMB) announced this decision in a two-page memo acquired by POLITICO. The funding pause excludes assistance provided directly to individuals, yet ambiguity remains about whether funds initially sent to states or organizations, and subsequently distributed to households, are affected. This freeze will impact a wide range of priorities, including domestic infrastructure, energy projects, diversity-related programs, and foreign aid.
Set to commence at 5 p.m. on Tuesday, merely a day after the memo's distribution to federal agencies, the freeze requires the suspension of payments by all federal agencies. However, exceptions have been made for Social Security and Medicare payments. The memo describes the freeze as "temporary," though it fails to specify a definitive end date. This action is part of the Trump administration's broader strategy to shift control of the federal purse strings away from Congress members.
The funding halt could disrupt billions of dollars in grants directed towards state and local governments. Programs benefiting numerous households may experience significant interruptions, while the president's orders also include a freeze on funding from the Democrats' Inflation Reduction Act and the bipartisan infrastructure package enacted in 2021. A 90-day freeze on foreign aid has also been imposed.
Senate Minority Leader Chuck Schumer criticized the move as an example of the administration's ongoing "assault on the functions of government." He further lambasted the decision, stating it could result in "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." Schumer expressed skepticism regarding the temporary nature of the freeze, declaring, "They say this is only temporary, but no one should believe that."
Diane Yentel, president of the National Council of Nonprofits, voiced concern over the potential impact on organizations reliant on federal aid. In her statement, she warned that the order "could decimate thousands of organizations and leave neighbors without the services they need." The freeze is projected to last for at least 90 days; however, the timeline for its conclusion remains uncertain.
Kogan, another critic of the administration's actions, remarked, "This is as bad as we feared it would be." The sweeping freeze signifies a significant shift in federal operations and priorities under the current administration.
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