Democrats reacted quickly to the Trump administration’s requirement that federal agencies pause financial assistance programs pending review.
“The blast radius of Trump’s terrible, unconstitutional, and illegal decision to halt virtually all federal grants and loans is virtually limitless,” Senate Minority Leader Chuck Schumer (D-N.Y.) wrote on X.
Sen. Patty Murray (D-Wash.) said: “We could see a screeching halt to resources for child care, cancer research, housing, police officers, opioid addiction treatment, rebuilding roads and bridges, and even disaster relief efforts.”
Letitia James, the attorney general of New York, wrote on social media that she would challenge the move in court.
At issue is whether the temporary pause on distributing financial aid to organizations constitutes an unconstitutional use of the presidential power of impoundment.
Experts say the matter is not entirely clear-cut and will likely be resolved in the courts.
Yesterday, a federal judge temporarily blocked the plan after a group of nonprofit organizations filed a lawsuit.
Impoundment occurs when the president chooses not to disburse funds appropriated by Congress, instead leaving them unspent in the U.S. Treasury. The practice was strictly limited by Congress under the Impoundment Control Act of 1974 (ICA).
“No, it is not an impoundment under the Impoundment Control Act,” an OMB memo stated. “It is a temporary pause to give agencies time to ensure that financial assistance conforms to the policies set out in the President’s Executive Orders, to the extent permitted by law.”
That includes lining up with recent executive orders related to foreign aid, nongovernmental organizations, DEI, gender ideology, and the Green New Deal.
Karoline Leavitt, White House press secretary, said it’s a matter of fiscal accountability.
“The reason for this [order] is to ensure that every penny that is going out the door is not conflicting with the executive orders and actions that this president has taken,” Leavitt said.
Sen. John Thune (R-S.D.) said, “I think that’s a normal practice at the beginning of administration until they have an opportunity to review how the money is being spent.”
Robert Kravchuck, an emeritus professor at Indiana University, said he thinks the order probably meets the definition of impoundment, something the president can’t do on his own authority.
“Though it’s a little muddy because it’s a shared responsibility,” Kravchuck said. In the case of financial aid grants, Congress appropriates the funding but generally allows the executive branch to set parameters on the grants and make the awards.
James said she would ask a Manhattan federal court to block the funding pause.
—Lawrence Wilson
BOOKMARKS
Reps. Jamie Raskin (D-Md.) and Gerry Connolly (D-Va.) are asking for clarification on the firing of Department of Justice officials who helped former special counsel Jack Smith prosecute President Donald Trump. The lawmakers are accusing the new administration of violating federal law, but a spokesperson for the DOJ said the firings are part of the “mission of ending the weaponization of government.”
Israeli Prime Minister Benjamin Netanyahu is set to visit Donald Trump on Feb. 4, and will be the first foreign leader to visit the new president in his second term. Netanyahu had previously spoken to Trump after his victory in November, discussing policy issues related to Iran.
Attorneys general from 19 Republican-led states have written a letter to Costco CEO Ron Vachris, asking him to rid his company of diversity/equity/inclusion (DEI) initiatives. Costco shareholders recently requested a report on possible financial effects of DEI programs on the company, but its board of directors unanimously opposed that request.
The government has finally provided an explanation for the drone sightings that occurred on the East Coast late last year. According to White House press secretary Karoline Leavitt, the drone flights were authorized by the Federal Aviation Administration “for research and various other reasons.”
Pittsburgh Mayor Ed Gaine said he does not plan to cooperate with Immigration and Customs Enforcement (ICE) agents who attempt to deport illegal immigrants from his city. “ICE is not going to end the situation of a failed immigration policy,” he said, suggesting that providing a path to citizenship is a better way forward.
—Stacy Robinson
