Trump Spending Freeze Order Creates Chaos
A federal judge has stayed a decision by President Trump’s Office of Management and Budget (OMB) to essentially freeze billions in federal grants and disbursements. It capped a whirlwind day of confusion and vitriol.
Democrats cried that the executive branch was usurping congressional authority and the lawmakers and a coalition of non-profit groups won the stay until early next week. The administration argued it had the duty to look at outlays after years of runaway spending. Objectively, what happened appeared to be the first major misstep of the administration. Whatever one’s views on the action, it was clearly not well telegraphed or rolled out. The White House had to refine what was indeed stalled at several points today, finally landing on the fact that direct aid to individuals, such as welfare, Medicaid, and Medicare, was not being impacted. But other healthcare grants that do benefit Americans would undoubtedly have been impacted.
The battle will be just one in many coming up. The OMB said that outlays would resume after they determine whether spending aligns with Trump’s executive orders. The White House may also seek to use impoundment, which is very likely illegal. There, too, will be the major spending reductions expected in a budget reconciliation bill.
Additional articles: https://www.fiercehealthcare.com/regulatory/trump-admin-orders-temporary-pause-most-federal-financial-assistance and https://www.modernhealthcare.com/politics-policy/trump-pause-federal-grants-temporarily-blocked-judge and https://www.healthcaredive.com/news/trump-freezes-federal-grants-healthcare-medicaid-providers/738449/ and https://insidehealthpolicy.com/daily-news/advocates-worried-trump-pause-grant-funding-impacts-medicaid-chip and https://www.modernhealthcare.com/politics-policy/trump-pauses-federal-grants-loans-funding and https://www.modernhealthcare.com/politics-policy/federal-funding-freeze-grants-medicaid and https://www.modernhealthcare.com/politics-policy/trump-pause-federal-grants-freeze-white-house
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https://thehill.com/regulation/court-battles/5111837-trump-federal-aid-freeze-blocked