Breaking down the Trump admin’s controversial federal-aid freeze
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On Monday night, the Trump administration ordered a temporary pause in nearly all federal aid programs while it conducts an across-the-board review of potentially trillions of dollars in US government spending.
But, hours later, the order was temporarily blocked from going into effect.
What’s in the order? In a two-page memo, the Office of Management and Budget (OMB) ordered federal agencies to temporarily suspend all activities related to the “obligation or disbursement of all Federal financial assistance,” as well as other activities that may be implicated by Trump’s executive orders.
The memo didn’t mention which specific groups or programs are affected – but the Education Department said the freeze won’t affect student loans and has no bearing on FAFSA, and OMB officials said the order wouldn’t affect individual assistance programs like Social Security, Medicare, food stamps, and welfare benefits.
- A separate OMB document obtained by NBC News appears to contain 2,600+ specific spending programs up for review, including the federal Pell Grant program and school meals for low-income students.
- $1+ trillion of federal funds go directly into state, city, and other local governments, supporting things from housing programs to early childhood education.
Driving the move: Trump administration officials say it’s necessary to halt most federal aid programs to ensure government spending complies with Trump’s recent blitz of executive orders. Among other things, the President wants to increase fossil fuel production and end all diversity, equity, and inclusion (DEI) efforts.
The pushback: Many Democratic lawmakers, nonprofits, and other institutions that receive federal assistance have voiced opposition to the White House's latest move.
- A group of six state attorneys general sued yesterday to block Trump’s order – and minutes before it was set to take effect at 5 pm ET, a federal judge temporarily halted federal agencies from implementing the order until arguments can be held.
Looking ahead…Oral arguments in the state AGs’ case are scheduled for Monday morning.
📊 Flash poll: Do you agree with the Trump administration’s order to temporarily pause nearly all federal aid programs pending an across-the-board review?
See a 360° view of what media pundits are saying →
Sprinkles from the Left
- Some commentators argue that students applying for federal financial aid, such as the FAFSA and Pell Grants, help build a strong economy by ensuring those at risk have equal opportunities to enter the workforce. that those at risk
- Others have predicted that Trump and his administration would risk federal financial aid, particularly in education, thereby jeopardizing the opportunities of students nationwide.
- “Editorial: Applying for financial aid key for students, economy” –Everett Herald Editorial Board
- “Donald Trump will be a threat to student loan forgiveness.” –Ryan Williams, Cavalier Daily
- “Donald Trump may hold hostage financial aid to California based on misinformation.”–Tom Philp, San Luis Obispo Tribune
Sprinkles from the Right
- Some commentators argue that the Trump administration must stop politicizing aid programs, such as disaster aid for states like California, and simply provide assistance when needed.
- Others contend that the president should practice a less stringent approach to providing aid by offering methods and recommendations for ensuring better management of things such as disasters, so states will be more resilient in the future, rather than relying on the federal government.
- “Stop playing politics with disaster aid to California.” –Chicago Tribune Editorial Board
- “Sensible Strings for California Fire Aid.”–Wall Street Journal, Editorial Board
- “Trump discrimination-based aid cuts must be condemned.” –Manila Times Editorial Board
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