A radical White House freeze on potentially trillions of dollars in US government spending including on grants and loans was due to take effect Tuesday, sparking accusations that President Donald Trump is violating the constitution.
The order from the White House budget office, issued a week after Trump began his second term, threatens to disrupt hundreds of billions of dollars in funding for everything from local governments to education and small business loans.
It was not clear in the memo, issued Monday by acting director of the Office of Management and Budget (OMB) Matthew Vaeth, how such a pause on disbursements of funding will work or for how long.
The extraordinary measure follows a similar announcement that US foreign aid is also frozen.
Trump won the presidency in part on promises to dismantle large sections of the US government and to slash spending. He has made clear he intends to review all federal programs — and many of the employees — to check that they meet his political goals.
The budget office memo said “this temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities.”
However, it remained unclear whether the president has authority to halt spending approved by Congress, which under the constitution holds power over the US budget.
Democrats immediately accused Trump of a power grab and of putting swaths of the country, which is reliant on federal funds, at risk.
‘Political vandalism?’
Senator Patty Murray called the order “a brazen & illegal move.”
“The law is the law — Trump must immediately reverse course, follow the requirements of the law, & ensure the nation’s spending laws are implemented as Congress intended,” she posted on X.
Another senator, Richard Blumenthal, said the “illegal” order will create “havoc” in medical and research facilities, which receive major government funding.
“This is political vandalism. Taking a wrecking ball to federal agencies does nothing to make government more efficient but it is already doing grave damage to people and programs throughout the country,” Senator Chris Van Hollen said on X.
The OMB memo stated that “federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance and other relevant agency activities.”
It excluded Social Security and Medicare benefits — used by retirees — from this pause.
Areas that might be impacted, it said, include “financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal” — references to racial equality and climate change programs.
“Career and political appointees in the Executive Branch have a duty to align Federal spending and action with the will of the American people as expressed through Presidential priorities,” Vaeth said.
He added that financial aid should be “dedicated to advancing Administration priorities,” issues like easing the burden of inflation, unleashing US energy and manufacturing, and “ending ‘wokeness.'”
Federal spending included more than $3 trillion in financial assistance like grants and loans in fiscal year 2024.
