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The federal government on Tuesday is slated to implement a freeze on tens of billions of dollars in federal grants. President Donald Trump ordered the stop as part of his larger effort to purge the government of programs and expenditures promoting diversity initiatives. The suspension is already having a wide-ranging impact on a host of federally funded programs, from Meals on Wheels to Medicaid.
In a memo first obtained by independent journalist Marisa Kabas, Office of Management and Budget (OMB) Acting Director Matthew J. Vaeth wrote that “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.”
“Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,” the memo continued, with an exception for “assistance provided directly to individuals,” like Social Security and Medicare.
In the first days of his presidency, Trump has signed several executive orders targeting foreign aid, environmental spending, and federal diversity and inclusion programs, but the OMB’s order represents a power play that will directly affect millions of Americans’ access to publicly funded resources. The order’s vague wording promoted alarm over the potential suspension of critical safety net programs that are not structured as direct payments from a government agency to individuals could be affected.
Programs like the Supplemental Nutrition Assistance Program (SNAP), which are funded through federal grants but operated at a state level in what is known as a pass-through grant, may be forced to halt payments. Over 60 percent of SNAP participants are families with children. The Children’s Health Insurance Program (CHIP) is also funded via pass-through grants that may render large swaths of beneficiaries vulnerable under the new order.
Several organizations that receive federal funding reported chaos and confusion over the directives rollout. According to reports from multiple outlets, state agencies and other groups experienced issues on Tuesday accessing funding portals related to Medicaid, emergency aid, and health care systems.
In a social media post, Sen. Ron Wyden (D-Ore.) said that his office “confirmed reports that Medicaid portals are down in all 50 states following last night’s federal funding freeze. This is a blatant attempt to rip away health insurance from millions of Americans overnight and will get people killed.”
Groups like Meals on Wheels also stated that the order’s rollout was causing chaos among their local branches. “If in fact this order includes the Older Americans Act, this would presumably halt service to millions of vulnerable seniors who have no other means of purchasing or preparing meals,” Meals on Wheels said in a statement responding to the action. “And the lack of clarity and uncertainty right now is creating chaos for local Meals on Wheels providers not knowing for sure whether they should be serving meals today.”
Head Start, an HHS initiative that provides early childhood education and developmental support to children, told NBC News that some programs sustained by the organization had been cut off from their funding.
“While we understand that this is an evolving story, this disruption, at best, will slow down Head Start agencies’ ability to pay hundreds of thousands of staff, contractors, and small businesses who support Head Start operations in every corner of the country,” said National Head Start Association Executive Director Yasmina Vinci. “At worst, this means that hundreds of thousands of families will not be able to depend on the critical services and likely will not be able to work.”
The White House, meanwhile, is claiming many of the programs that appear to have already been impacted by the action will not, in fact, be impacted. Hours before the order was set to go into effect, the White House released a Q&A attempting to clarify that “mandatory programs like Medicaid and SNAP will continue without pause,” and that “funds for small businesses, farmers, Pell grants, Head Start, rental assistance, and other similar programs will not be paused.”
In a briefing on Tuesday, White House Press Secretary Karoline Leavitt said that it “is not a blanket pause on federal assistance in grant programs […] Social Security benefits, Medicare benefits, food stamps, welfare benefits, assistance that is going directly to individuals will not be impacted by this pause.”
When asked if she had a full list of agencies and that would be affected by the order, Leavitt indicated that she did not have such a list on hand, but would consult the OMB to obtain one. When asked if she could guarantee that no one on Medicaid would be cut off as a result of the policy, Leavitt said, “I’ll check on that.”
The order has already been met with legal action. Less than an hour before the order was scheduled to go into effect, 23 state attorneys general filed a lawsuit seeking to block its enforcement.
Earlier in the day, a coalition of nonprofits and health groups filed a request for an emergency order to block the implementation of the action. “This Memo — made public only through journalists’ reporting, with barely twenty four hours’ notice, devoid of any legal basis or the barest rationale — will have a devastating impact on hundreds of thousands of grant recipients who depend on the inflow of grant money (money already obligated and already awarded) to fulfill their missions, pay their employees, pay their rent — and, indeed, improve the day-to-day lives of the many people they work so hard to serve,” the lawsuit — originally obtained by Politico — argues.
Some members of Congress have challenged Trump’s ability to carry out such an order, under the argument that it’s the legislative branch that approves grant spending — not the president. “Congress approved these investments and they are not optional, they are the law,” Senate Minority Leader Chuck Schumer (D-N.Y.) wrote on social media. “These grants help communities in red states and blue states and support families, help parents raise kids, and lead to stronger communities.”
In a separate post, Schumer accused the president of “jeopardizing billions upon billions of community grants and financial support that help millions of people across the country.”
“It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities, state disaster assistance, local law enforcement, aid to the elderly, and food for those in need,” he wrote.
Senate Appropriations Committee Vice Chair Patty Murray (D-Wash.) and House Appropriations Committee Ranking Member Rosa DeLauro (D-Conn.) wrote in a letter to Vaeth that the scope of the order “is breathtaking, unprecedented, and will have devastating consequences across the country,” and that the actions “will have far-reaching consequences for nearly all federal programs and activities, putting the financial security of our families, our national security, and the success of our country at risk.”
Some Republicans aren’t happy, either. “I hope it’s short lived, because there’s real people that depend on these grants, and real people with real jobs, with missions, and I’ve heard from people in my district this morning asking me about it,” Rep. Don Bacon (R-Neb.) said in response, per NOTUS, adding that he “doesn’t know how” the administration could stop the payments considering they were appropriated by Congress.In a press conference this morning, Schumer continued to rail on the action, calling it “lawless, dangerous, cruel” and describing it as “Project 2025 by another name.” Trump’s nominee to become the permanent OMB director, Russell Vought, was one of Project 2025’s primary architects. “Russell Vought, at OMB with this power, is frightening,” Schumer added today. “What does Vought want to do? You saw it in his blueprint, Project 2025: Eradicate basic services, eradicate investments that help tens of millions of Americans — all so they can pay for the tax cuts for the ultra rich. It’s hard to overstate how destructive this decision is for the country.”
