White House Rescinds Federal Aid Freeze In CT

CONNECTICUT — A federal aid freeze announced this week by the Trump Administration has been rescinded, multiple sources are reporting Wednesday afternoon.

CNN reported that it has obtained a memo from a Trump administration official communicating that the freeze is rescinded. That memo was also shared by state officials in New Jersey.

The New York Times also reported the freeze was rescinded, citing two sources familiar with the matter.

"This freeze would have left millions of Americans in uncertainty, particularly those who need access to life necessities like food, housing, education, and healthcare," Gov. Ned Lamont said. "There was not enough analysis completed by the White House to fully understand its impact, which would have undoubtedly been overwhelming. This decision was the right move, and we’re relieved that for now, common sense prevailed."

The White House confirmed that the Office of Management & Budget pulled the order Wednesday in a two sentence notice sent to agencies and departments, but said that Trump's underlying executive orders targeting federal spending in areas like diversity, equity and inclusion and climate change, remained in place.

Administration officials said the decision to halt loans and grants was necessary to conduct a review to ensure that spending complies with Trump's recent blitz of executive orders. Agencies had been directed to answer a series of yes or no questions on each federal program by Feb. 7. The questions included "does this program promote gender ideology?" and "does this program promote or support in any way abortion?"

Still, the vaguely worded memo, combined with incomplete answers from the White House throughout the day, left lawmakers, public officials and average Americans struggling to figure out what programs would be affected by the pause. Even temporary interruptions in funding could cause layoffs or delays in public services.

From Previous Story:

The planned pause on trillions of dollars in federal grants and loans would allow the administration to conduct an ideological review of spending, one which Connecticut leaders feared could cause disruption in health care research, education programs and other initiatives.

“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,” Matthew Vaeth, the acting director of the Office of Management and Budget, wrote in a memo late Monday.

While the full effect on Connecticut programs was unclear, Trump administration officials clarified Tuesday that programs that provide direct assistance to Americans would not be affected, such as Medicare, Medicaid, Social Security, student loans and food stamps. They also defended the funding pause, saying Trump was following through on his promise to turn Washington upside down if elected to a second term.

"The Federal memo came suddenly. It's very vague," Lamont told reporters Tuesday. Democrats and independent organizations are questioned the legality of the Republican administration’s funding freeze, characterizing it as capricious and illegal because Congress had already authorized the funding.

U.S. Sen. Chris Murphy, D-CT, joined Senate Democrats at a press conference earlier Tuesday, and predicted "The scope of the damage that will be done is enormous to poor kids who rely on Head Start programs, to families who desperately need that cancer research done, to veterans who, if they miss one or two appointments, their life falls apart suddenly overnight."

Lamont said he had already spoken with over 50 university presidents about the effect the freeze might have on research in the Nutmeg State, and questioned its timing:

"The same day that the Chinese announced that they could be leapfrogging us and artificial intelligence, is the day that the federal government wants to say 'we're going to stop funding research and development at our universities.' Didn't make any sense to me."

Washington is a hub of spending that flows to various departments, local governments, nonprofits and contractors, and the memo had left many people who are dependent on that money wondering how they would be affected.

Connecticut Attorney General William Tong called the planned funding freeze "a full assault on Connecticut families," announcing he had joined a coalition of 22 AGs suing to fight its implementation.

"Connecticut is locked arm in arm with states across the nation seeking an immediate restraining order to protect critical services that each and every one of us rely on every day," Tong said.

The pause was the latest example of how Trump is harnessing his power over the federal system to advance his conservative goals. Unlike during his first term, when Trump and many members of his inner circle were unfamiliar with Washington, this time he's reaching deep into the bureaucracy.

"They are pushing the president’s agenda from the bottom up," said Paul Light, an expert on the federal government and professor emeritus of public service at New York University.

He also said there are risks in Trump's approach, especially with so many voters reliant on Washington.

"You can’t just hassle, hassle, hassle. You’ve got to deliver."

"Are you stopping NIH cancer trials?" Sen. Amy Klobuchar, a Democrat from Minnesota, wrote on social media, referring to the National Institutes of Health.

Rep. Rose DeLauro of Connecticut, the top Democrat on the House Appropriations Committee, expressed "extreme alarm" in a letter to Vaeth.

"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," she wrote, alongside Senate Appropriations Committee leader Sen. Patty Murray of Washington.

The Associated Press contributed reporting.