Trump's funding freeze explained: How it could impact DC, Virginia, Maryland

UPDATE: Judge temporarily blocks Trump's freeze on federal grants, loans

A federal judge has temporarily blocked President Donald Trump's freeze on federal grants and loans. READ MORE HERE

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President Donald Trump is pausing federal grants and loans starting Tuesday as part of his across-the-board review of government spending.

In a memo, Matthew Vaeth, the acting director of the Office of Management and Budget said using federal resources to advance "Marxist equity, transgenderism, and Green New Deal social engineering policies is a waste of taxpayer dollars." 

MORE: Medicaid access paused by federal funding freeze, states say

What we know:

The funding freeze by the Republican administration could affect trillions of dollars and cause widespread disruption in health care research, education programs and other initiatives. 

However, a White House official said that the memo would not result in any devastating effects on programs, explaining to Fox News Digital that the OMB explicitly instructed agencies to identify programs with immediate deadlines so that "exceptions can be granted without any program impact." It does not constitute a permeant stop of the funds.

JUMP TO: When does the pause go into effect?

Even grants that have been awarded but not spent could be halted. 

Here's everything you need to know: 

FILE: Money in a tip jar. (Robert Alexander/Getty Images / Getty Images)

FILE: Money in a tip jar. (Robert Alexander/Getty Images / Getty Images)

Possible programs that would be affected by freeze: List 

What we don't know:

The memo has left many reliant on federal aid uncertain about how they will be impacted. 

  • Health care research will likely be affected.
  • Education programs will likely be affected.
  • Medicaid could be affected.
  • Disaster assistance could be affected.
  • SNAP benefits will likely not be affected.

Medicaid

At least 20 states, including New York, were reportedly locked out of their Medicaid reimbursement systems after President Donald Trump's administration announced a federal funding freeze on Tuesday. It is unclear if this is related to the funding freeze.

States on average receive about 30% of their revenues from the federal government, according to Federal Funds Information for States. The largest grant program is Medicaid, which provides health care for lower-income children and adults. But it’s unclear whether the Trump administration’s pause will interrupt the flow of Medicaid reimbursement funds to states.

Read more coverage on Medicaid impacts here.

SNAP benefits

Supplemental Nutrition Assistance Program (SNAP) benefits, or food stamps, will likely not be affected, according to Fox News. 

Education grants

The Education Department says the pause doesn’t apply to grants received by individuals, including the 40 million Americans with federal student loans and 7 million with Pell Grants. 

This means students relying on federal aid for tuition and other costs won’t face disruptions. 

Department officials said they’re still reviewing the effect of the memo.

Infrastructure

Federal funds are crucial for state highway and bridge projects, but state transportation officials are still awaiting guidance from federal authorities.

FAFSA

According to the memo, FAFSA and other student loans will not be directly affected by the directive, as the memo specifies that the pause does not affect "assistance provided directly to individuals."

What is the Office of Management and Budget? 

Dig deeper:

The Office of Management and Budget (OMB) oversees the performance of federal agencies and administers the federal budget.

 In a recent memo, Vaeth criticized the use of federal resources, saying that "the use of Federal resources to advance Marxist equity, transgenderism, and Green New Deal  social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve." 

Who is Matthew Vaeth?

The backstory:

Vaeth emphasized that all spending must comply with President Trump's executive orders, which aim to reverse progressive policies on transgender rights, environmental justice, and diversity, equity, and inclusion (DEI). 

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Vaeth says "each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders."

It’s unclear how sweeping the pause will be.

What is the Green New Deal?

The Green New Deal, introduced by Rep. Alexandria Ocasio-Cortez and Sen. Edward Markey in 2019, proposes transitioning the U.S. from fossil fuels, reducing greenhouse gas emissions, and creating high-paying clean energy jobs.

When does the pause go into effect?

The pause takes effect at 5 p.m. Eastern on Tuesday. 

What they're saying:

Many are calling this an attempt to push Trump's agenda from the bottom up, arguing that there are risks in his approach, particularly given how many voters depend on federal funding.

Sen. Patty Murray of Washington and Rep. Rose DeLauro of Connecticut, on the Senate and House appropriations committees, expressed "extreme alarm" in a letter to Vaeth.

"As leaders of the House and Senate Committees on Appropriations, we write with extreme alarm about the Administration’s efforts to undermine Congress’s power of the purse, threaten our national security, and deny resources for states, localities, American families, and businesses.

A briefing with White House press secretary Karoline Leavitt, her first, is scheduled for 1 p.m. ET.

PoliticsDonald J. TrumpEconomy