President Donald Trump ordered a freeze on potentially trillions of dollars in federal funding, effective Tuesday, affecting a wide range of programs from education grants to small business loans. This move has raised concerns and accusations that he may be violating the Constitution.
The freeze was outlined in a memo issued by the White House budget office, one week into Trump’s second term. However, the memo, signed by acting director of the Office of Management and Budget (OMB) Matthew Vaeth, did not clarify how or for how long the pause would last.
This decision follows a similar freeze on US foreign aid. Trump, who ran on a platform of reducing government size and cutting spending, has used this measure to ensure that federal programs align with his conservative political agenda.
A senior official in the Trump administration explained that the freeze was intended to enforce compliance, with funding continuing for programs that align with Trump’s priorities.
The order has caused confusion and concern among federal grant recipients, and Democrats have strongly criticized it, accusing the president of overstepping Congress’s constitutional power over the federal budget.
In the 2024 fiscal year, federal spending included over $3 trillion in grants and loans approved by Congress. Despite claims from the administration that the freeze complies with the law, Democratic leaders like Senator Patty Murray have denounced the move as illegal, urging Trump to reverse it and follow Congressional guidelines.
Other lawmakers, including Senator Richard Blumenthal, warned that the freeze could disrupt critical medical and research funding. Senator Chris Van Hollen called it “political vandalism,” saying it would harm federal agencies and the people they serve.
The OMB memo directed federal agencies to halt all activities related to the disbursement of financial assistance, with exceptions for Social Security and Medicare. It noted that the freeze would affect funding for areas such as foreign aid, diversity and inclusion programs, gender ideology initiatives, and climate change efforts—all areas Trump has criticized and promised to dismantle.
The freeze is also seen as a threat to essential services. The Sierra Club warned that it could jeopardize funding for disaster relief, home heating assistance, clean water programs, and the National Suicide Prevention Hotline.
Sierra Club executive director Ben Jealous expressed concern, saying, “By halting vital federal funding, Donald Trump has immediately put Americans at risk.”
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