Democrats question legality of Trump freeze on federal grants

Source: The Hill

01/28/25 9:09 AM ET


Democrats are sounding “extreme alarm” over a recent memo issued by the Trump administration directing federal agencies to temporarily pause disbursement of loans, grants and other financial assistance.

In a memo late on Monday, Matthew Vaeth, acting director of the Office of Management and Budget (OMB), said agencies must halt “all activities related to obligation or disbursement of all federal financial assistance” to the “extent admissible by applicable law,” while ordering a review of programs to determine “best uses of the funding” consistent with Trump’s priorities.

But top Democrats are already raising questions over the legality of the move. In a statement late on Monday, Senate Minority Leader Chuck Schumer (D-N.Y.) accused the Trump administration of “blatantly” disobeying the law “by holding up virtually all vital funds that support programs in every community across the country.”

“Congress approved these investments and they are not optional; they are the law. These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities.” He said the move could jeopardize “billions upon billions of community grants and financial support that help millions of people across the country.” “It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities,” he added.

Read more: https://thehill.com/business/budget/5110266-democrats-question-legality-of-trump-freeze-on-federal-grants/