White House Rescinds Federal Aid Freeze In MA

Update, Wednesday, 1:30 p.m.: The Trump administration rescinded their federal aid freeze they announced earlier this week, according to multiple sources.

CNN reportedly obtained a memo from a Trump administration official stating that the freeze was rescinded.

The New York Times reported that two sources familiar with the matter also said the it was rescinded.

More details are available here: White House Rescinds Funding Freeze, Defusing Brewing Legal Battle

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MASSACHUSETTS - The Trump administration’s abrupt pause on trillions of dollars in federal grants and loans as his administration conducts an ideological review of spending could cause widespread disruption in healthcare research, education programs and other initiatives in Massachusetts.

A federal district judge has since granted an administrative stay in a case challenging the Trump administration's planned freeze of federal aid. On pause for a week, a hearing is set for next Monday morning for further arguments.

The order only applies to the pause of disbursements in open grants. It doesn't parse the legality of the freeze, only giving the court time for further briefings.

“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.

The White House so far has offered few details about the scope of the freeze. While the full effect on Massachusetts programs is unclear, the memo said Medicare and Social Security benefits are unaffected by the pause. Medicaid payments in all 50 states have been paused, and the system's website currently says because of “executive orders regarding potentially unallowable grant payments." It's unclear if food stamps, disaster assistance and other programs are affected. Even grants that have been awarded but not spent are supposed to be halted.

Democrats and independent organizations question the legality of the Republican administration’s funding freeze, characterizing it as capricious and illegal because Congress had already authorized the funding.

Court battles are imminent, and Democratic New York Attorney General Letitia James plans to ask a Manhattan federal court to block the Republican president’s moves, calling it an “unconstitutional pause on federal funding.”

“More lawlessness and chaos in America as Donald Trump’s Administration blatantly disobeys the law by holding up virtually all vital funds that support programs in every community across the country," Senate Minority Leader Chuck Schumer, a Democrat from New York, said in a statement. “If this continues, the American people will pay an awful price.”

The grants help people “in red states and blue states, support families, help parents raise kids, and lead to stronger communities,” Schumer said, adding that “it will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities.”

“I know it’s going to cost us jobs in construction,” Gov. Maura Healey told reporters at the State House, according to MassLive. “It’s going to raise energy costs, it’s going to interfere with people’s access to food assistance and health care, it’s going to cut off seniors' access to assistance to pay their heating bills.”

Attorney General Andrea Campbell did not mince words in her statement regarding the funding freeze.

“Trump’s directive to pause federal aid is a reckless abuse of power,” Campbell said. “Massachusetts residents rely on billions of dollars in federal funds daily for their health and child care, food and the roads we drive on.”

Sen. Elizabeth Warren also sharply criticized the move.

"I just heard from a nonprofit in Massachusetts that helps veterans with transitional housing," she said in a statement. "Trump's shutdown of gov funding hurts their ability to buy and prepare food for 100+ veterans."

The other Democratic senator from Massachusetts, Ed Markey, also released a statement.

"Trump is unconstitutionally freezing federal funds that Congress sent our constituents & dismantling the democratic system," Markey said. "This isn't business as usual—Congress needs to stop it."

The pause takes effect at 5 p.m. ET Tuesday, and it's unclear from the memo how sweeping it will be. Vaeth said that all spending must comply with Trump's executive orders, which are intended to undo progressive steps on transgender rights, environmental justice and diversity, equity and inclusion, or DEI, efforts.

Vaeth wrote that “each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders.”

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

The pause is 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.

Sen. Patty Murray of Washington and Rep. Rose DeLauro of Connecticut, the top Democrats on the Senate and House appropriations committees, 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," they wrote.

The Associated Press contributed reporting.