Trump administration funding freeze

According to a White House budget office directive, federal assistance funding must be frozen by Tuesday at 5 p.m. This could include state and local government grants, nonprofit organizations, universities, small business loans, and aid.

The White House points out that $3 trillion was spent on government assistance programs in 2024, suggesting that the freeze may have far-reaching effects.

“This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements,” the document states.

The document was leaked Monday night, and the White House has yet to reply. CBS News has attested to its legitimacy.

The Office of Management and Budget’s memo from Monday night instructs government departments to evaluate whether President Trump’s executive orders are being followed, with a focus on “DEI, woke gender ideology, and the Green New Deal.” Given that the Green New Deal was never enacted into law, it is unclear exactly what these measures refer to.

“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 states.

According to the White House, Social Security and Medicare benefits won’t be impacted.

Senate Minority Leader Chuck Schumer was already attacking Democrats on Tuesday morning, calling the action “lawless and chaotic” and “holding up virtually all vital funds that support programs in every community across the country.”

“Congress approved these investments and they are not optional; they are the law,” Schumer said in a statement.

Schumer pointed out that school lunch programs, senior assistance, and disaster relief might all be impacted by this short-term freeze.

There may be legal challenges to the order.

In a social media post, National Council of NGOs president and CEO Diane Yentel described the directive as a “potential 5-alarm fire for nonprofits.”

“From pausing research on cures for childhood cancer to closing homeless shelters, halting food assistance, reducing safety from domestic violence, and shutting down suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives,” Yentel stated. “This order could decimate thousands of organizations and leave neighbors without the needed services.”

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