Federal funding freeze could mean halt to law enforcement and education, say Senate Democrats

Record ID: 1953890

  • Title: Federal funding freeze could mean halt to law enforcement and education, say Senate Democrats
  • Date: 28th January 2025
  • Summary: LEICESTER, ENGLAND, UNITED KINGDOM (FILE - MAY 16, 2016) (UK POOL) VARIOUS OF LATE LEICESTER CITY TEAM OWNER VICHAI SRIVADDHANAPRABHA (RIGHT) AND HIS SON AIYAWATT (LEFT), THE VICE-CHAIRMAN, JOIN OTHERS AT PREMIER LEAGUE VICTORY PARADE AT VICTORIA PARK VIEW OF CROWD CROWD CHEER AND WAVE FLAGS VARIOUS OF OWNERS, WES MORGAN AND THEN-LEICESTER MANAGER CLAUDIO RANIERI RAISING T
  • Embargoed: 11th February 2025 18:34
  • Keywords: budget federal funding omb pause trump
  • Location: Washington, D.C., USA
  • City: Washington, D.C., USA
  • Country: US
  • Topics: Budget/Taxation/Revenue,North America,Government/Politics
  • Reuters ID: LVA007685128012025RP1
  • Aspect Ratio: 16:9
  • Story Text: President Donald Trump's White House ordered a pause in all federal grants and loans starting on Tuesday (January 28), a sweeping decision that could disrupt education, health care and food programs, housing assistance, disaster relief and a host of other initiatives that depend on trillions of federal dollars.
    The freeze followed Trump's suspension of foreign aid last week, a move that began cutting off the supply of lifesaving medicines on Tuesday to countries around the world that depend on U.S. development assistance.
    The Office of Management and Budget, which oversees the federal budget, said in a memo that grants and loans would be put on hold while the administration ensures they are aligned with the Republican president's priorities, including executive orders he signed ending diversity, equity and inclusion efforts.
    The memo said Tuesday's freeze included any money intended "for foreign aid" and for "nongovernmental organizations," among other categories.
    The White House said the pause would not impact Social Security or Medicare payments or "assistance provided directly to individuals." That would presumably spare disability payments and the SNAP food program for the poor, though it was not clear whether health care programs for veterans and low-income people would be affected.
    The OMB memo is the latest directive in the Trump administration's campaign to dramatically reshape the federal government, the nation's largest employer, since he took office on Jan. 20.
    The spending freeze ordered by OMB takes effect at 5 p.m. ET (2200 GMT) on Tuesday. Agencies have until Feb. 10 to submit detailed information on any programs subject to the suspension.
    The federal government provides money to a broad swath of nonprofits, which reacted with dismay and confusion.
    Democrats immediately criticized the spending freeze as unlawful and dangerous, and Democratic state attorneys general said they were working on a legal challenge.
    U.S. Senator Patty Murray, the top Democrat on the Senate Appropriations Committee, said on Tuesday the OMB action could have devastating consequences.
    "We could see a screeching halt to resources for child care, housing, police officers, opioid addiction treatment, rebuilding roads and bridges and even disaster relief efforts," Murray said.
    Senate Democratic Leader Chuck Schumer said the administration did not have the authority to prevent spending approved by Congress.
    "This decision is lawless, destructive, cruel," Schumer said in a speech to the Senate. "It's American families that are going to suffer most."
    The U.S. Constitution gives Congress control over spending matters, but Trump said during his campaign that he believes the president has the power to withhold money for programs he dislikes. His nominee for White House budget director, Russell Vought, who has not yet been confirmed by the Senate, headed a think tank that has argued Congress cannot require a president to spend money.
    (Production: Julio-Cesar Chavez)
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