INDIANAPOLIS — The White House ordered a freeze on all federal grants and loans so President Donald Trump's administration can review government spending.
The temporary pause is slated to go into effect Tuesday at 5 p.m. ET and blocks the disbursement of nearly all federal funding. The order also directs all federal agencies to submit detailed reports on "any programs, projects or activities subject to this pause" by no later than Feb. 10, 2025.
The order will impact a huge swath of federal funds already allocated for things like the Inflation Reduction Act and Bipartisan Infrastructure Bill projects, as well as foreign aid commitments and funding for some non-profit organizations and services.
MORE INFO | States to sue after Trump administration orders pause on federal grants, loans
Social Security and Medicare payments are not slated to be impacted. Funding for those initiatives will continue uninterrupted.
Congressman Andre Carson issued the following statement regarding the order:
Trump is illegally holding Americans’ hard-earned tax dollars hostage to push his own extreme agenda.
These executive orders have frozen taxpayer dollars that Congress already approved. This is your money. The role of Congress is to take action benefitting the will of the people. These contradictory orders are creating widespread confusion and disruption. Medicaid disbursements were frozen today in a number of states, and the orders could impact healthcare providers, health and safety inspectors, firefighters, and schools.
First Trump fired the inspector generals charged with fighting corruption. Now he’s trying to rip up the Constitution to seize money that belongs to you. This money is not Trump’s to take away as he pleases – it belongs to the taxpayers. Congress directed the executive branch to disburse these funds, and the president cannot ignore Congress. These actions are proof of what Democrats have been warning for months: Trump is doing whatever it takes to get what he wants. Congress already authorized and appropriated these funds to help the American people, and it is unlawful and unconstitutional to revoke them.
Trump has now weaponized government services to punish communities he doesn’t like, and to stoke fear and chaos. This chaos won’t prevent us from fighting back. Every American should be concerned at how this will impact basic services they rely on, and what it means to have a president who has no respect for the Constitution or the rule of law.
While politicians like Carson oppose the pause on spending, others like Indiana Gov. Mike Braun are backing President Trump.
Gov. Braun issued the following statement:
I applaud President Trump’s direction to pause government spending, fulfilling his campaign promise to rein in out of control government. This level of fiscal discipline is exactly the kind of leadership we need in Washington, DC and is in line with the values of Hoosiers and the American people who elected him. We are releasing guidance to Indiana’s government agencies for compliance and next steps. I am confident we will continue to deliver needed services to Hoosiers with efficiency, doing more with less.
