The Trump administration's move to freeze federal grants and loans, citing concerns over 'woke' policies, has sparked widespread condemnation from Democrats and advocates. The order, which takes effect Tuesday, is expected to impact millions of Americans who rely on funding for education, healthcare, and social programs.
Young children, ages 3 to 5, participate in a morning warm-up at the Head Start classroom, led by lead teacher Tanya Wetzel (right), on March 13, 2023, in Frederick, Maryland. Calling a federal grant and loan funding freeze announced by the Trump administration “a massive, massive overreach,” U.S. Sen.
Patty Murray was among those expressing fury on Tuesday over a move that could have far-reaching implications for millions of Americans who rely on federal food assistance and education and healthcare programs, among other necessities.Murray (D-Wash.). “Will local Head Start facilities get their funding? Will grantees at our local universities get the funding that they use to continue clinical trials? What does this mean for our homeless veterans we are working to get housed?” The senator, who serves as vice chair of the Senate Appropriations Committee, was speaking at a press conference given by Democratic leaders Tuesday morning, hours after the acting director of Office of Management and Budget (OMB), Matthew Vaeth, sent a memo to the heads of all government agencies announcing an imminent pause on all federal grants and loans. The Trump administration’s move was ideologically driven, the memo suggests, with each federal agency required to conduct a “comprehensive analysis” in the coming weeks to ensure its grant and loan initiatives operate within the bounds of President Donald Trump’s executive orders. “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,” reads Vaeth’s. “This temporary pause will provide the administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the president’s priorities.”Murray called on Americans to “ask themselves: Is it ‘woke’ to fund cancer research or to rebuild an unsafe bridge? All of these critical priorities are funded by the grants the Trump administration would pause tonight… The American people did not vote for this kind of senseless chaos.” The precise impact of the administration’s order, which is set to go into effect at 5:00 pm ET on Tuesday, is not made clear by the memo, but Vaeththat the federal government spent more than $3 trillion in fiscal year 2024 on federal financial assistance including grants and loans. The memo says the funding pause should not be “construed” to include Social Security or Medicare and “does not include assistance provided directly to individuals” — but Democratic lawmakers and economic justice advocates were quick to point out that millions of people will be affected, including those whose paychecks depend on federal funding. Diane Yentel, the president and CEO of the National Council of Nonprofits, called the memo “a potential five-alarm fire for nonprofits and the people and communities they serve.” 🚨OMB sent a memo to federal agencies this evening, requiring all federal loans and grants be paused by 5pm tomorrow.that “no one should believe” the funding freeze is temporary, and said it was illegal to pull back funding that has already been appropriated by Congress. “Donald Trump must direct his administration to reverse course immediately and the taxpayers’ money should be distributed to the people,” said Schumer. “Congress approved these investments and they are not optional; they are the law… These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities.” The pause, he said, “will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to nonprofit charities.”the funding pause “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.” “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,” said Vinci.While the Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Families, and the Women, Infants, and Children nutritional program include benefits that are distributed to individuals, Kelly noted that the programs are implemented by state and local governments — so the memo’s impact on them is unclear.Kitty Richards, senior fellow at Groundwork Collaborative, was that “this blatantly illegal and authoritarian act threatens programs and aid that millions of families rely on.” “Working people could lose their healthcare,” said Richards. “Lifesaving research will stop. People won’t know the status of their student loans. Kids could go hungry. And there’s no reason to believe that this will be temporary. It’s simply a shocking power grab by the president that will sow chaos in the economy and around the glob
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