In a memo released Monday night, the White House Office of Management and Budget announced that it was pausing federal grants and loans effective 5 p.m. on Tuesday, less than 24 hours after it was signed.
The order has sent officials scrambling as they try to decipher what programs are at risk of losing federal funding. The order is expected to affect trillions of dollars of grants and loans and impact funding of state, local and tribal governments as well as tie up federal money allocated to disaster relief aid, small businesses and healthcare research.
According to a memo from Matthew Vaeth, acting director of the Office of Management and Budget, Medicare and Social Security benefits will not be impacted.
The full effect on Medicaid and many other government-funded programs is still uncertain, but all 50 states have been shut out of the Medicaid portal. White House press secretary Karoline Leavitt confirmed that the website was down and would “be back online shortly.”
In a social media post, Illinois Gov. J.B. Pritzker said that President Trump does not have the authority to stop federal aid. According to the Constitution, Congress has the power to direct funds, and many are questioning the legality of the order.
“In Illinois, we will stand against unlawful actions that would harm millions of working families, children and seniors,” Pritzker said in his post.
Chicago Mayor Brandon Johnson was asked about the order in a press conference concerning recent raids in the city by U.S. Immigration and Customs Enforcement, also known as ICE.
“This is something that is well outside the purview of the executive office,” Johnson said.
Illinois Attorney General Kwame Raoul announced that his office was joining a lawsuit filed by attorneys general from New York, California, New Jersey, Rhode Island and Massachusetts. The suit seeks a court order to immediately stop the freezing of federal funds.
The Education Department has said the pause does not apply to most federal student loans or federal Pell grants, including Title I and IDEA, but the department is still reviewing the effects of the memo.
DePaul, like most universities, receives many grants from the federal government that provide funds for research and student programs.
In a statement on Tuesday afternoon, DePaul president Robert Manuel released an email assuring the DePaul community that the order is not expected to disrupt Pell grants, individual student loans, or federal work work-study programs.
Manuel added that the university is unsure how the freeze will affect federal research grants and that DePaul is in constant contact with government officials, such as the Attorney General of Illinois.
He urged the community to care for each other in times of uncertainty.
“Together, we will navigate these challenges and remain steadfast in our mission,” Manuel said.
This is an ongoing story.
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