Trump administration is calling for a for a spending freeze on federal assistance by 5 pm Tuesday, potentially impacting aid to non-profits, universities, small business loans and governmental grants at state and local levels, reports CBS News citing a memo from the White House budget office.
“This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements,” states the memo.
The implications could be substantial, considering the $3 trillion expenditure on federal assistance programmes in 2024.
The Office of Management and Budget’s memo instructs federal agencies to evaluate compliance with Presidential executive orders, specifically addressing “DEI, woke gender ideology and the Green New Deal”, though it lacks clarity on these policies’ specifics, particularly as the Green New Deal never became law.
“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,” the document states.
The directive clarifies that Medicare and Social Security benefits remain unaffected.
Meanwhile, the Democrats responded by Tuesday morning, with Senate Minority Leader Chuck Schumer denouncing the “lawlessness and chaos” of the decision, stating it is “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,” Schumer added.
Schumer highlighted that the temporary suspension might impact disaster relief, support for the elderly and school meal programmes.
Additionally, Diane Yentel, who heads the National Council of Nonprofits as president and CEO, expressed on social media that the directive represents a “potential 5-alarm fire for nonprofits.”
“From pausing research on cures for childhood cancer to closing homeless shelters, halting food assistance, reducing safety from domestic violence, and shutting down suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives,” Yentel said. “This order could decimate thousands of organisations and leave neighbours without the services they need.”
The directive is expected to face legal opposition from intended fund recipients, possibly in the immediate future. Lower courts might instruct agencies to resume funding during legal proceedings, potentially requiring the Justice Department to request urgent intervention from the Supreme Court.
