President Trump’s funding freeze: How it could impact you

Following President Donald Trump’s directive to suspend federal funds, Michigan agencies are dealing with uncertainty.

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    President Donald Trump signed an executive order, freezing federal funding on Monday.
    
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    The order sent nonprofits and agencies into turmoil about how they would be impacted.
    
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    Late on Tuesday, a federal judge temporarily blocked the order.
    

• 
  President Donald Trump signed an executive order, freezing federal funding on Monday.
  
• 
  The order sent nonprofits and agencies into turmoil about how they would be impacted.
  
• 
  Late on Tuesday, a federal judge temporarily blocked the order.
  

DETROIT (FOX 2):As part of his comprehensive examination of government spending, President Donald Trump issued an executive order on Tuesday that halted federal grants and loans. But a court momentarily blocked the order shortly before the deadline.

Minutes before it was scheduled to take effect, U.S. District Judge Loren L. AliKhan stopped the action Tuesday afternoon. The freeze is put on hold until Monday due to the administrative stay. The suspension was intended to be initiated by the White House as part of an all-encompassing ideological assessment of federal spending.

For organizations that depend on Washington for their financial lifeline, the idea caused confusion and alarm. Federal assistance to individuals, including as food stamps, student loans, scholarships, Social Security, and Medicare, would not be impacted, according to administration officials.

This is only the most recent in a string of events that have devastated NGOs and state agencies in Michigan as Donald Trump begins his second term in office.

What is impacted by federal funding freeze

Levitt told reporters at the briefing that government help to individuals, such as student loans, scholarships, welfare benefits, food stamps, Social Security, and Medicare, would not be impacted.

What they’re saying:

“If you are receiving individual assistance from the federal government, you will still continue to receive that,” Leavitt stated. “However, it is the responsibility of this president and this administration to be good stewards of taxpayer dollars.”

Financial aid pertaining to nongovernmental groups, diversity and equity, international aid, and the Green New Deal is especially targeted by the moratorium.

What is unknown to us:

The broad reach of the freeze, however, has sparked worries about potential financing disruptions for education, which could have an effect on educational activities. The Office of Management and Budget clarified Tuesday afternoon that obligatory programs like Medicaid and SNAP will remain in addition to social security and Medicare.

The opposing viewpoint:

Many members of the Michigan League for Public Policy are alarmed by the decision, wondering how severely it would affect funding for essential programs.

“There are literally millions of people that rely on services that are funded through federal grants and contracts,” stated Monique Stanton. “Additional cuts could be coming- there is concern about federal long term cuts to Medicaid and those types of things will have devastating consequences on people’s lives everyday.”

Based on the figures:

47% of Michigan children are covered by Medicaid, according to Stanton. It would be devastating to lose such healthier coverage.

The federal government provides 70% of Michigan’s Department of Health and Human Services’ $26 billion budget, and the freeze would affect numerous other environmental and health initiatives.

The National Council of Nonprofits and other organizations have requested an injunction to halt this directive, raising questions about its validity. Stanton stated that several attorneys general around the nation have either filed a lawsuit or are planning to do so.

Attorney General Dana Nessel of Michigan is one of them.

Senator Elissa Slotkin blasted the action, claiming it was illegal, and mentioned the worries of farmers, childcare facilities, universities, nursing homes, veterans, mayors, and cancer patients—all of whom depend on government grants and programs.

“This administration, like every administration, must follow the law, and the law says that money is appropriated by Congress,” Slotkin stated.

What is the Office of Management and Budget?

Look more closely:

The federal budget is administered and the performance of federal agencies is monitored by the Office of Management and Budget (OMB).

“The use of Federal resources to advance Marxist equity, transgenderism, and Green New Deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” stated Matthew Vaeth, acting director of OMB, in a recent memo criticizing the use of federal resources.

The Source: This report drew information from FOX’s LiveNOW and the Associated Press.