The White House's sudden pause on federal grants and loans is drawing sharp criticism from education leaders, union officials and Democratic lawmakers, asPresident Donald J. Trump
The pause, which took effect Tuesday at 5 p.m. ET, could affect trillions of dollars in funding and has sparked concerns about disruptions to scientific research, education programs, and disaster relief efforts. While the administration says individual benefits like Social Security and Medicare won't be affected, the freeze applies to both new funding and previously awarded but unspent grants.
University leaders warned the move could significantly harm American research competitiveness.
"This action will sideline world-leading American scientists who are working toward cures for cancer, developing breakthroughs in AI and quantum computing, driving progress in advanced manufacturing, and supporting American farmers," said Dr. Mark Becker, the outgoing president of the Association of Public and Land-grant Universities (APLU).
The administration defended the move as necessary to ensure compliance with Trump's executive orders on transgender rights, environmental justice, and diversity initiatives. Matthew Vaeth, acting director of the Office of Management and Budget, wrote that using federal resources for “Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars.”
“The effect of the current president's unlawful pause on all federal aid is catastrophic for America's working families,” said Randi Weingarten, president of the American Federation of Teachers. She highlighted ongoing crises requiring immediate federal response, including “the worst tuberculosis outbreak in American history happening in Kansas” and pending disaster relief needs in multiple states.
Democratic officials are preparing legal challenges. New York Attorney General Letitia James announced plans to seek an injunction in Manhattan federal court, calling the pause unconstitutional. Sen. Patty Murray of Washington, the top Democrat on the Senate Appropriations Committee, warned of “devastating consequences” including potential halts to “child care, cancer research, housing, police officers, opioid addiction treatment, rebuilding roads and bridges, and even disaster relief efforts.”
The APLU called the mandate “overly broad” and “unnecessary and damaging,” warning it would “have far-reaching impacts in every corner of the country and hamper American innovation at a moment when it's being fiercely challenged on a global stage.”
The decision has created widespread uncertainty among organizations dependent on federal funding. Weingarten emphasized the broad impact on vulnerable populations: "Children with disabilities; families in need of housing; seniors who rely on Medicaid for healthcare; low-income pregnant women; students with loans and grants; children enrolled in Head Start; police, fire, healthcare and other first responders—all rely on funds from the federal government."
The funding freeze comes as the latest example of Trump's enhanced ability to leverage federal bureaucracy in his second term, drawing on deeper experience with Washington's administrative systems than during his first presidency. However, experts note this approach carries political risks, particularly given the wide range of voters who rely on federal programs.
“Federal programs need to be more efficient, but no one voted for a president to halt their services—services that were appropriated, authorized and extended by Congress,” Weingarten said. “Americans need a federal government that works for them, not against them.”