Disarray Prevails in Government as Trump Imposes Broad restrictions on Federal Budget Spending
In a move that has drawn bipartisan criticism, the Trump administration has announced a partial spending freeze on federal agency spending related to government grants, loans, or assistance. This decision comes as the administration seeks to ensure spending is consistent with the president's policies and requirements.
The freeze, set to go into effect on Tuesday at 5 p.m., does not have a set end date. According to White House Press Secretary Karoline Leavitt, the focus is on analyzing federal government spending, as per the Office of Management and Budget (OMB).
Russ Vought, Trump's pick to lead the OMB, faced criticism during his confirmation hearing for declining to confirm he would abide by a federal statute that requires the executive branch to spend money that Congress appropriates. Senate Democrats plan to push their Republican colleagues to hold up a vote on Vought's nomination.
Agencies must submit to the OMB information on all programs and activities subject to the pause and explain their purpose by February 10. Agencies must also assign political appointees to oversee each impacted initiative, and the OMB may grant exceptions to the freeze on a case-by-case basis.
The OMB has also asked agencies to identify for each federal assistance program which political appointee is in charge, when upcoming disbursements and obligations are scheduled, and if it deals with issues such as diversity or others covered by Trump executive orders.
The decision to freeze federal spending has been denounced by Democratic lawmakers, including Sen. Angus King, who described it as "blatantly unconstitutional." Senate Democrats plan to launch lawsuits against the Trump administration's spending freeze.
The 1974 Impoundment Control Act prohibits the executive branch from withholding congressionally appropriated funds for policy reasons, but it allows for a narrow set of circumstances when the president can freeze funding. However, it does not appear the Trump administration has made any such formal notice.
The freeze on federal spending exempts programs providing direct assistance to individuals, such as Social Security, Medicare, and food assistance. Legal challenges to Trump's directive are certain to arrive.
The move comes after various executive orders from President Trump have already frozen spending on foreign aid, Inflation Reduction Act spending, and Infrastructure Investment and Jobs Act funding. The government spent $3 trillion on loans and grants in fiscal 2024, according to the Office of Management and Budget acting Director Matthew Vaeth.
The memorandum has drawn rebuke from Democrats and organizations that rely on federal funding. US state and local government officials were reportedly asked by the Trump administration in April 2020 to designate political appointees for each affected initiative concerning the implementation of the pause on federal aid grants.
A federal judge has issued a temporary injunction on the Trump administration's partial spending freeze, adding another layer of complexity to the situation. The details of this injunction and its implications remain to be seen.
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