White House Rescinds Federal Aid Freeze In NJ

Update, Wednesday, 1:30 p.m.: A federal aid freeze announced this week by the Trump Administration has been rescinded, multiple sources are reporting Wednesday afternoon.

CNN reported that it has obtained a memo from a Trump administration official communicating that the freeze is rescinded.

The New York Times also reported the freeze was rescinded, citing two sources familiar with the matter.

New Jersey Attorney General Matthew Platkin, who was one of more than a dozen attorneys general that filed a lawsuit on Tuesday to block the freeze, said the rescission is "a win for all Americans — and for the rule of law."

He shared a screenshot of the memo, which reads:

"OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel."

"Thanks to our lawsuit, (Trump) had to admit that he can't unlawfully defund the police, end your healthcare, or close schools to score political points," Platkin said in a short statement Wednesday.

On Tuesday, a federal judge had temporarily blocked the plan to halt the distribution of trillions of dollars in federal grants and loans until a hearing could be held Monday morning.

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

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NEW JERSEY — 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 health care research, education programs and other initiatives in New Jersey.

“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 New Jersey programs is unclear, the memo said Medicare and Social Security benefits are unaffected by the pause. But it’s unclear if Medicaid, 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.”

A coalition of state attorneys general filed a lawsuit on Tuesday to block the federal grant freeze, including New Jersey AG Matthew Platkin.

The pause will raise costs and disrupt day-to-day life for a number of New Jerseyans, said Congresswoman Mikie Sherrill. And it threatens a number of projects that are already underway such as NJ Transit repairs and Gateway Tunnel project construction, Sherrill added.

"(The freeze) means stalled infrastructure projects that increase commute times, fewer mental health resources for our kids and veterans in crisis, missed paychecks for union workers, and seniors going hungry without food assistance from Meals on Wheels," said Sherrill (D-NJ-11).

U.S. Senator Andy Kim, a fellow Democrat, said the Trump Administration is "trying to wage war against the American people" and "sow chaos" by implementing the funding freeze, firing several inspectors general, and issuing sweeping executive orders on deportation, DEI hiring efforts, and more.

“We see him now from the Oval Office trying to wage war against the American people, trying to think solely about how he can contain and consolidate that power for himself," Kim said. "Who is going to be the people who struggle and suffer from it? It is going to be the American people.”

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.