The start of Trump’s second term has been a chaotic mess for this administration and the American people. This week, in one of his most lawless actions to date, the Trump administration’s Office of Management and Budget ordered the pause of all federal grants and loans dispersed by the federal government.
The order sent local officials and non-profit organizations nationwide into a tailspin as critical programs and services were suddenly at risk for the sake of Trump’s extreme, conspiracy-driven culture war.
The National Council of Nonprofits CEO Diane Yentel called the order a “five-alarm fire” and said that “even a short pause in funding could be devastating and cost lives. This order could decimate thousands of organizations and leave neighbors without the services they need.”
The freeze was restrained by a federal judge before officially going into effect, but according to reporting from the Washington Post, the order “briefly disrupted Medicaid payments, senior meals, special education, and housing stipends.”
Take a look at the chaos, fear, and uncertainty caused by Trump’s unconstitutional attempt at freezing funding for critical programs, services, and research to suit his extreme far-right agenda:
- At least 20 states were reportedly locked out of their Medicaid reimbursement systems.
- In Oregon, the Oregon Health Authority temporarily couldn’t access a Medicaid portal that allows states to enter costs for reimbursements. Preschool providers who receive funds through Head Start for low-income children and the state Department of Early Learning and Care also couldn’t log in to payment management systems. The state Department of Justice could not access a federal portal to seek reimbursements for child support enforcement.
- In Wisconsin, a Head Start program in Waukesha actually shut down due to the freeze, impacting 65 workers and 309 children and their families. Dr. Tim Nolan, the CEO for the Waukesha-based program, said they will reopen “when we actually are able to get cash, not just a promise of cash, but actual cash so we can pay our staff.”
- In New Hampshire, Waypoint, the state’s longest-running human services and children’s charitable organization, reported the system used to bill for services related to homelessness programs and receive federal funding was blocked.
- In North Carolina, local officials feared losing disaster relief and resilience grants as residents rebuild from devastating hurricanes. The state is home to the fourth-largest life sciences industry in the country. More than 800 life sciences companies support 75,000 jobs in North Carolina, many of which are funded through federal research grants many feared were at-risk.
- In Nebraska, the Nebraska Rural Health Association said the order meant clinical trials, recruitment and payment programs and rural veteran care were feared at risk. The organization’s executive director warned, “Federal funding supports so many areas of rural healthcare that a significant change really could create further issues for our rural hospitals, our clinics, provider teams and communities and the patients within the community.”
- In Minnesota, the Minnesota Association of Community Health Centers feared the freeze would force layoffs, service closures, and even clinic shutdowns across the state. Sixteen of the state’s clinics collectively receive about $45 million in federal grants each year.
- In Arizona, the attorney general said the freeze “devastates law enforcement” and pointed to funding at risk for programs like the Arizona High Intensity Drug Trafficking Area (HIDTA), which works to curb illegal drug activity and prosecute traffickers.
- The city of Phoenix announced the freeze would jeopardize $35 million in federal funds for their police and fire departments.
- In Indiana, the local police departments already spent money on critical projects after getting notice they were recipients of federal awards. Local officials said a freeze would put those public safety projects at risk.
- In Maine, Bangor’s housing authority announced their office was unable to withdraw any operating funds.
- In Michigan, the state’s Housing Development Authority announced they had to cancel a scheduled training for a proposed pilot program under their single-family mortgage program and that the authority was pausing all new programs from launching.
- In Alaska, a state that saw more than half of its revenue come from federal funds in the 2022 fiscal year, the decision confused local officials who feared losing billions of dollars for infrastructure projects, natural resource projects, and permitting. Officials warned that a freeze had “the potential to throw a wrench in the state.”
- In Alabama, the state’s Department of Education’s discretionary funding was affected and local non-profits feared losing resources for housing, veterans, meals for seniors, and support for parents.
In an abuse of his power, Trump has stocked his administration with MAGA ideologues with little knowledge or concern about the long-term effects of an illegal funding freeze. The result could be long-lasting delays for everything from scientific research to public safety to infrastructure projects across the country:
- Experts warned that a freeze would have a “horrific” effect on emergency management and “make us less prepared for any disasters that happen in the future.” In addition, experts warned programs to secure ports of entry, combat terrorism, and strengthen cybersecurity were in jeopardy, saying, “This is full-on national security being put at risk when you take away these grants.”
- According to Todd DeVoe, emergency coordinator for Inglewood, California, recovery efforts could be “delayed for years” due to Trump freezing billions in needed disaster aid.
- The Trump administration’s freeze paused steps in the lengthy and intricate federal research grant review process. According to experts, research groups relying on NIH funding for ongoing projects may face cash flow challenges, potentially resulting in a need to scale back research activities or temporarily reassign staff.
- NIH staff have already reported difficulties meeting with study participants or recruiting patients into clinical trials, delays in submitting research findings to science journals, and rescinded job offers.
- Construction firms engaged in infrastructure projects funded by the Infrastructure Investment and Jobs Act and Inflation Reduction Act are still in limbo regarding the scope of the freeze, which could directly affect jobs and wages for workers.
- Eileen Huck, deputy director of government relations for the National Military Family Association, warned that the freeze could impact thousands of programs veterans rely on and that “even having a question about whether a program or a resource that you rely on is going to suddenly become unavailable just adds stress and chaos.”
- Low-Income Housing Coalition Interim President and CEO Renee Willis said a pause in funding could cause “significant harm to low-income families and their communities” and that “low-income households receiving federal rental assistance could face eviction, and in the worst cases, homelessness, homeless shelters may be forced to close their doors, and nonprofit organizations may have to lay off staff.”
- A spokesperson for Meals on Wheels said the uncertainty created “chaos” for Meals on Wheels providers throughout the country who didn’t know if they would be able to serve meals to seniors in need.
Published: Jan 31, 2025 | Last Modified: Feb 3, 2025