Democrats question legality of Trump freeze on federal grants
Democrats are sounding “extreme alarm” over a recent memo issued by the Trump administration directing federal agencies to temporarily pause disbursement of loans, grants and other financial assistance.
In a memo on late Monday, Matthew Vaeth, acting director of the Office of Management and Budget (OMB), said agencies must halt “all activities related to obligation or disbursement of all federal financial assistance” to the “extent admissible by applicable law,” while ordering a review of programs to determine “best uses of the funding” consistent with Trump’s priorities.
But top Democrats are already raising questions over the legality of the move.
In a statement on late Monday, Senate Minority Leader Chuck Schumer (D-N.Y.) accused the Trump administration of “blatantly” disobeying the law “by 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. These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities.”
He said the move could jeopardize “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,” he added.
Vaeth said in the memo on Monday that the temporary pause will become effective on Tuesday at 5 pm. But there’s uncertainty over how the two-page order, which uses broad and overtly political language, will be carried out.
The directive requires agencies to identify and “review all federal financial assistance programs and supporting activities consistent with the president’s policies and requirements,” while particularly targeting resources going toward “Marxist equity, transgenderism, and green new deal social engineering policies.”
The OMB also said it may grant exceptions allowing agencies to “issue new awards or take other actions on a case-by-case basis.”
“To the extent required by law, federal agencies may continue taking certain administrative actions, such as closeout of Federal awards (2 CFR 200.344), or recording obligations expressly required by law,” it added.
Democratic spending chiefs raised alarm over the move in a letter to Vaeth, calling the scope of the agency's actions “breathtaking” and “unprecedented,” while warning of “devastating consequences across the country.”
“As leaders of the House and Senate Committees on Appropriations, we write with extreme alarm about the Administration’s efforts to undermine Congress’s power of the purse, threaten our national security, and deny resources for states, localities, American families, and businesses,” Sen. Patty Murray (D-Wash.) and Rep. Rosa DeLauro (D-Conn.) wrote in the letter.
“This administration’s 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.”
The outcry comes as Trump is already facing accusations of violating impoundment law from Democrats over an executive order pausing the disbursement of funds approved in two of former President Biden’s signature laws.
-
US judge temporarily blocks Trump's freeze on federal grants and loans
The order is in response to a lawsuit that says the freezing of billions of dollars in already approved funding violates the law.BBC News - 1d -
Democratic states plan to sue over Trump's federal grant funding freeze
A Monday night memo could affect programs in every state, from aid to nonprofits to small business loans and local government grants.CBS News - 1d -
Judge temporarily blocks Trump administration’s federal grant freeze – live
US district judge halts order until 3 February at an emergency court hearing amid fear loans pause could be devastating for millions of Americans. Judge temporarily halts federal grant and loans ...The Guardian - 1d -
Democrats to sue White House budget office over federal grant freeze
A coalition of Democratic state attorneys general announced legal action against the White House budget office Tuesday over its directive to freeze federal assistance while reviewing whether ...The Hill - 1d -
Dem states signal imminent legal action against Trump administration over federal grant freeze
Several Democratic states have signaled imminent legal action to block a Trump administration order directing federal agencies to pause the disbursement of loans and grants while the government ...The Hill - 1d -
States Plan to Sue to Block Trump’s Federal Grants Freeze
Democratic attorneys general from states including New York, California, Illinois, New Jersey, Rhode Island and Massachusetts are moving to keep funds flowing to state governments and cities.The New York Times - 1d -
Trump administration orders federal funding freeze on loans, grants and more aid
The freeze could have wide-ranging implications, with the White House noting that $3 trillion was spent in 2024 on federal assistance programs.CBS News - 1d -
Trump administration puts freeze on federal grants and loans pending review
The Trump administration ordered a sweeping freeze on all federal grants, loans and other financial aid, according to a memo issued on Monday. The temporary pause, which goes into effect at 5 p.m. ...CBS News - 1d -
Trump administration freezes nearly all federal grants and loans
President Donald Trump has ordered a freeze of nearly all federal financial assistance and activities including "foreign aid, nongovernmental organizations, DEI woke gender ideology, and the Green ...NBC News - 1d
More from The Hill
-
Hegseth touts Guantánamo Bay as 'perfect spot' to house migrants
Secretary of Defense Pete Hegseth said Guantánamo Bay is the “perfect spot” to house deported migrants, after President Trump signed a memo Wednesday ordering a facility there be prepared for that ...The Hill - 1h -
Vance lauds Trump’s second term approach: ‘All gas, no brakes’
Vice President Vance praised President Trump’s approach to his second term, touting the quick and broad actions of the new administration as well as the stamina of the president compared to his ...The Hill - 2h -
Watch live: Local authorities respond to airplane collision near Reagan National Airport
A regional jet and helicopter collided near Reagan National Airport shortly before 9 p.m. local time on Wednesday evening. The Federal Aviation Agency (FAA) said that a PSA Airlines regional jet, ...The Hill - 2h -
Regional jet carrying 64, military helicopter collide near Reagan National Airport
A regional jet carrying 60 passengers and four crew members collided with a military helicopter on Wednesday night as it approached Reagan National Airport. The flight was en route from Witchita, ...The Hill - 2h -
Zuckerberg hails Trump administration on Meta earnings call
Meta CEO Mark Zuckerberg on Wednesday praised President Trump’s administration and said he looks forward to “redefining” the relationship the tech giant has with governments. “This is also going to ...The Hill - 3h
More in Politics
-
Hegseth touts Guantánamo Bay as 'perfect spot' to house migrants
Secretary of Defense Pete Hegseth said Guantánamo Bay is the “perfect spot” to house deported migrants, after President Trump signed a memo Wednesday ordering a facility there be prepared for that ...The Hill - 1h -
Vance lauds Trump’s second term approach: ‘All gas, no brakes’
Vice President Vance praised President Trump’s approach to his second term, touting the quick and broad actions of the new administration as well as the stamina of the president compared to his ...The Hill - 2h -
Watch live: Local authorities respond to airplane collision near Reagan National Airport
A regional jet and helicopter collided near Reagan National Airport shortly before 9 p.m. local time on Wednesday evening. The Federal Aviation Agency (FAA) said that a PSA Airlines regional jet, ...The Hill - 2h -
Musk affiliate in FBI director's office sparks fear of partisan interference
A person who has been affiliated with Elon Musk’s SpaceX and a former aide to one of the FBI’s toughest Congressional critics are working as advisers to the bureau’s director, current and former ...NBC News - 2h -
Regional jet carrying 64, military helicopter collide near Reagan National Airport
A regional jet carrying 60 passengers and four crew members collided with a military helicopter on Wednesday night as it approached Reagan National Airport. The flight was en route from Witchita, ...The Hill - 2h