Trump attempt to freeze federal grants, loans leads to outrage and confusion
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SPRINGFIELD, Ill. (NEXSTAR) — President Donald Trump tried to put a freeze on federal funding issued by the government, but it was quickly blocked by a judge until Monday.

The order will no doubt face further legal challenges, but it is still well within the realm of possibility that it does happen.

The impact of this order is unclear, and there was no clear end date for it. Instead, it just said agencies would need to do a thorough review of the way the money was being spent so it would line up with Trump’s priorities. Confusion ran rampant on Tuesday, as states scrambled to understand the scope.

Freezing federal loans and grants could impact trillions of federal dollars that funnel their way down to federal programs, state agencies, nonprofits, social safety net programs and advocacy groups. The full scale of the effect is unclear, but Illinois Governor JB Pritzker asked all state agencies to write up a report on the full impact of this freeze.

“What Donald Trump tried to do in the last 24 hours is illegal. Let’s be clear,” Pritzker (D-Illinois) said.

Pritzker’s office spent all day trying to understand the impact the decision could have on Medicaid. The memo sent to agency heads did specify that Medicare and Social Security would not be impacted, but it did not clearly define that Medicaid was protected. Over 3.4 million people in Illinois alone count on Medicaid for their healthcare coverage, the majority of which are children.

Just hours after the memo went out, the state was locked out of the Medicaid portal that they use to file for reimbursements from the same federal dollars they were worried were at risk from the freeze. On Tuesday, the Trump administration came out and said that direct Medicaid reimbursements would not be impacted, and they said the website going down was not part of the freeze. Pritzker said that was a back pedal. He — and other lawmakers — said the two happening so close to each other couldn’t have been a coincidence.

“Now the administration would like us to believe that these were just coincidental website outages,” Pritzker said. “Donald Trump and his administration have not earned the benefit of the doubt. They are either lying to us or they are critically incompetent.”

Comptroller Susana Mendoza’s office also was concerned about the impact of the freeze, but she said the state was up to date on Medicaid reimbursement requests before the memo went out, meaning if Medicaid was impacted, there wouldn’t be an immediate problem for the state.

“We were in the best case scenario situation for today in a bad situation, right?” Mendoza said. “But moving forward, it is never a good idea to have all of these Medicaid bills piling up and then have to pay them and get no federal match in the process.”

A long list of Illinois Democratic officials lined up to bash Trump for the attempted pause.

Congresswoman Nikki Budzinski said it was a power grab, and worried about what the future of the Trump Administration looks like.

“I think it’s deeply disturbing. Disturbing when you consider the next four years ahead of us. It’s not just this recent executive order freezing all federal grants and the legality, serious legal challenges that we’re going to be faced around that,” Budzinski said. “We had a flurry of executive orders last week as well that were also deeply concerning.”

Illinois Attorney General Kwame Raoul was one of several that filed a lawsuit against the order.

“It will have a devastating impact on public safety, prosperity and quality of life for all Americans and certainly citizens in the state of Illinois,” Raoul said.

Senator Tammy Duckworth said that Congress cannot give any ground and allow the executive branch to strip the power of the purse from Congress, and she said the effects the freeze had without going into effect should not be downplayed.

“Whatever you’re hearing from the Trump administration, understand that it has already affected working families, some of our most vulnerable.”

Trump made it clear on the campaign trail that making cuts to federal spending was a priority, but to attempt to do so while circumventing congress was such a brazen attempt that it shocked state leaders.

“Congress has the power of the purse, not the presidency,” Budzinski said. “And so that’s why this is so deeply disturbing. He is rolling back spending obligations that have already been made to communities and to individuals.”

Several Democrat lawmakers were skeptical this was about actually saving taxpayer money. They said it was about clearing the financial space for another tax cut for the wealthy during upcoming budget negotiations.

“This is a Trump administration trying to take control of the nation’s purse strings in order to fund his tax cuts for the ultra wealthy,” Duckworth said. “And he’s just going to try to stop funding across the board. And we can’t let him do that.”

During a briefing on Tuesday, White House Press Secretary defended the order, saying reiterating that there would be no impact to services that directly benefit people, such as social security, Medicare and Food Stamps.

House Republican Leader Tony McCombie defended the move from the White House.

“What are we afraid of? What? Why are we afraid of exposing how the money is being spent? That’s the better question,” McCombie said.

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