Trump administration orders freeze on federal funding

Widespread confusion ensues as federally funded programs scramble to make sense of order

The White House has temporarily put a stop to all federal grants and loans according to a memorandum issued yesterday.  

Going into effect today, Jan. 28 at 5 p.m. EST, the order will put a halt to trillions of dollars and affect programs such as education initiatives and nonprofits, according to the Associated Press. The administration claims that programs such as food stamps and Medicaid will not be affected. 

However, a handful of states have claimed access to Medicaid has indeed been cut, contradicting the administration’s statement. New York Attorney General Letitia James has maintained that New York and at least 20 other states have been denied access to the Medicaid payment system, according to Reuters News.  

Trump’s Press Secretary Karoline Leavitt said in a White House brief that the pause is meant to force federally funded organizations to review and adjust their spending to align with Trump’s presidential directives. This is expected to mostly inhibit spending on Democratic priorities such as LGBTQ+ rights and diversity, equity and inclusion organizations. 

“If they feel that programs are necessary and in line with the president’s agenda, then the Office of Management and Budget will review those policies,” said Leavitt. 

Various states, nonprofits and small businesses have already filed lawsuits against the White House in response to the order.  

Plaintiffs include the Main Street Alliance and the American Public Health Association, according to one official complaint document. The complaint requests a temporary order of restraint to prevent the order from going into effect and declares the memo unlawful and unconstitutional.  

While it is currently uncertain if federal student aid will be affected, the memo said that “assistance provided directly to individuals” will not be affected. It is unclear what programs this includes and if students will still be able to receive federal loans and Pell Grants. 

Alison Cranney can be reached at arg-news@uidaho.edu.

About the Author

Alison Cranney Senior at the University of Idaho, majoring in Psychology. I am the News Editor for the 2024-25 school year.

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