Stephen Miller Blames ‘the Media’ for Confusion Over Trump’s Federal Funding Freeze

In a wide-ranging and unprecedented move, the Trump administration has ordered a freeze on nearly all federal government aid in a stated effort to root out and end funding for “woke” policies, including what acting Office of Management and Budget Director Matthew Vaeth called “Marxist equity, transgenderism, and green new deal social engineering policies,” “DEI,” and “woke gender ideology.”

The reach of the freeze is extraordinary, but also largely undefined. In his memo, Vaeth suggested it affects $3 trillion in federal funding, nearly half of the federal government’s $6.75 trillion spent during fiscal year 2024. And while allegedly temporary, there is no date published for funding to be turned back on.

The Washington Post notes that the “memo states its orders should not be ‘construed’ to impact Social Security or Medicare recipients, and also says the federal financial assistance put on hold ‘does not include assistance provided directly to individuals.’”

But the federal government sends grants to the states for programs like Medicaid and SNAP (Supplemental Nutrition Assistance Program, commonly known as food stamps), the WIC (Women, Infants, and Children) food program, CHIP (Children’s Health Insurance Program), Temporary Assistance for Needy Families (TANF), highways, community development, housing, and education programs. It also provides funding through the Public Health Emergency Preparedness (PHEP) Cooperative Agreement, which helps states prepare for natural disasters and pandemics, like COVID.

The Bulwark’s Sam Stein observed, “This federal grant funding *pause* is going to impact a lot of people who voted for Trump. Whether they care or connect the dots is another matter.”

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Legal experts say the move could be unconstitutional. The Impoundment Control Act of 1974 requires Congressional approval for a president to withhold the funds Congress has allocated. The U.S. Supreme Court in Train v. City of New York (1975) also ruled a president cannot refuse to spend allocated funds.

Calling Vaeth’s memo “cryptic and thinly reasoned,” Professor of Law and constitutional scholar Steve Vladeck writes, “the consequences are potentially cataclysmic—for virtually all foreign aid (including the distribution of HIV drugs in poor countries); for medical and other scientific research in the United States; for tons of different pools of support for educational institutions; and for virtually every other entity that receives federal financial assistance.”

He says that “even without the Impoundment Control Act, the kind of across-the-board impoundment the OMB memo is effectuating, even temporarily, should pretty plainly be unconstitutional,” but adds, “the Impoundment Control Act appears to resolve the illegality of this move beyond dispute.”

Others are also condemning the Trump administration’s move.

“The US Constitution does not grant the President this unilateral authority,” remarked Democratic Illinois Governor JB Pritzker. In Illinois, we will stand against unlawful actions that would harm millions of working families, children, and seniors.”

Calling it a “brazen” and “illegal move,” U.S. Senator Patty Murray (D-WA) wrote, “the Trump administration is working to freeze federal funding passed into law. The law is the law—Trump must immediately reverse course, follow the requirements of the law, & ensure the nation’s spending laws are implemented as Congress intended.”

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Murray is vice chair of the Senate Appropriations Committee. She pointed to a letter she and her counterpart in the House of Representatives, Congresswoman Rosa DeLauro (D-CT) sent to the OMB chief:

Dr. Phillip Rocco is an associate professor whose “research examines the intersection between federalism, the policymaking process, and the political economy of policy expertise.” He suggests that more than a third of state budgets, on average, are funded by federal grants:

“To put the OMB grant freeze in context, roughly 17.5% of Wisconsin’s revenue comes from federal grants in aid last I checked. Overall, federal grants account for roughly 36% of all state government budgets in US. In a number of states the federal share is even higher.”

“It seems like a very big deal, ”Brian Riedl, a senior fellow at the right-wing Manhattan Institute, told the Post. “The funding delays are going to prove very difficult for grantees under the impression the money is coming, and have rent and salary payments dependent upon it.”

“In two pages, we’ve got what amounts to 60 years of tradition and policies that are thrown up in the air,” Donald Kettl, professor emeritus and former dean of the University of Maryland School of Public Policy, told the Post. Kettl, who has consulted for multiple government agencies, also said: “For those suffering most, the uncertainty will be immense.”

U.S. Senate Democratic Minority Leader Chuck Schumer issued a damning statement overnight condemning the OMB directive.

“More lawlessness and chaos in America as Donald Trump’s Administration blatantly disobeys the law by holding up virtually all vital funds that support programs in every community across the country. If this continues, the American people will pay an awful price,” he wrote. “They say this is only temporary, but no one should believe that. Donald Trump must direct his Administration to reverse course immediately and the taxpayers’ money should be distributed to the people.”

“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,” Schumer added. “Donald Trump’s Administration is jeopardizing 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.”

In another unprecedented move, as The Washington Post also reported, all agencies will have to send data not to a career OMB official, but to a political appointee.

“The agencies are also required to submit detailed lists of projects suspended under the new order by Feb. 10. Federal agencies must assign ‘responsibility and oversight’ to tracking the federal spending to a senior political appointee, not a career official, the memo states.”

The existence of the memo was first reported by journalist Marisa Kabas, of The Handbasket.

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