January 28, 2025
3 min learn
Trump Administration Orders Sweeping Freeze of Federal Support
The Trump administration has ordered a halt to “all federal financial assistance,” masking areas from home infrastructure and vitality tasks to overseas assist
In a two-page memo, the Workplace of Administration and Finances ordered all federal companies to quickly droop funds.
Anna Moneymaker/Getty Photographs
CLIMATEWIRE | One week in, the Trump administration is broadening its assault on the features of presidency and shifting management of the federal purse strings additional away from members of Congress.
President Donald Trump’s funds workplace Monday ordered a complete freeze on “all federal financial assistance” that may very well be focused underneath his earlier govt orders pausing funding for a variety of priorities — from home infrastructure and vitality tasks to diversity-related packages and overseas assist.
In a two-page memo obtained by POLITICO, the Workplace of Administration and Finances introduced all federal companies can be pressured to droop funds — except for Social Safety and Medicare.
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“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,” in line with the memo, which three folks authenticated.
The brand new order might have an effect on billions of {dollars} in grants to state and native governments whereas inflicting disruptions to packages that profit many households. There was additionally widespread confusion over how the memo can be carried out and whether or not it could face authorized challenges.
Whereas the memo says the funding pause doesn’t embrace help “provided directly to individuals,” as an example, it doesn’t make clear whether or not that features cash despatched first to states or organizations after which offered to households.
The temporary memo additionally doesn’t element all funds that will probably be halted. Nevertheless, it broadly orders federal companies to “temporarily” cease sending federal monetary help that may very well be affected by Trump’s govt actions.
That features the president’s orders to freeze all funding from the Democrats’ signature local weather and spending legislation — the Inflation Discount Act and the bipartisan infrastructure package deal enacted in 2021. It additionally imposes a 90-day freeze on overseas assist.
Senate Minority Chief Chuck Schumer in a press release decried the announcement for example of “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.”
The New York Democrat urged the administration to elevate the freeze.
“They say this is only temporary, but no one should believe that,” he said. “Donald Trump must direct his Administration to reverse course immediately and the taxpayers’ money should be distributed to the people. Congress approved these investments and they are not optional; they are the law.”
Bobby Kogan, who labored on the White Home funds workplace throughout the Biden administration, known as the memo a “big, broad, illegal” order that violates impoundment legislation, which blocks presidents from unilaterally withholding cash with out the consent of Congress.
“This is as bad as we feared it would be,” stated Kogan, who additionally served as a Democratic aide to the Senate Finances Committee and is now a director on the left-leaning Heart for American Progress.
The president of the Nationwide Council of Nonprofits, Diane Yentel, stated in a press release that the order “might decimate hundreds of organizations and go away neighbors with out the providers they want.”
The funding pause, first reported by journalist Marisa Kabas, is scheduled to start at 5 p.m. Tuesday, a day after the memo was sent to agencies.
Carmen Paun and Adam Cancryn contributed to this report.
Reprinted from E&E Information with permission from POLITICO, LLC. Copyright 2025. E&E Information offers important information for vitality and surroundings professionals.
