Federal Funding Freeze: How White House Order Could Affect RI

RHODE ISLAND — 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 Rhode Island.

“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 Rhode Island 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.”

"Trump’s power grab was plucked directly from the Project 2025 playbook," U.S. Sen. Sheldon Whitehouse (D-RI). "Rhode Islanders pay their taxes, and they expect to get a functioning federal government in return. It’s hard to tell if this is incompetence or mischief, but this funding freeze is illegal and unconstitutional, and every single American has a stake in getting it undone."

Whitehouse said the funding freeze will threaten the following services in Rhode Island:

• Medicaid services for Rhode Islanders
• Children’s early education and child care for families by pausing Head Start programs
• Domestic violence assistance programs
• Funding for major infrastructure projects like the replacement of the Washington Bridge
• Community health centers
• Grants for local law enforcement and homeland security activities
• Federal funding for K-12 schools.

"The Donald Trump funding freeze is unlawful, chaotic, and deeply harmful to the entire country," U.S. Rep. Gabe Amo (D-RI), said. "This action will bring great pain to many — from community health centers to federal programs that help feed hungry kids to small businesses and non-profit organizations doing good work in our communities. People will suffer at the hands of this decision. Make no mistake, these are federal dollars, paid for by taxpayers, for taxpayers, and already approved by Congress to benefit red and blue state communities alike. Alongside every reasonably-minded American, I urgently call on the president to end these illegal, political games."

The pause takes effect at 5 p.m. 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.

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