Trump Orders Freeze On All Federal Grants And Loans | EUROtoday

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President Donald Trump on Monday issued a sweeping memo ordering a halt to all grant, mortgage and different monetary help applications disbursed by the federal authorities, an enormous coverage change that might have an effect on an enormous vary of companies throughout the nation.

Matthew J. Vaeth, the appearing director of the White House Office of Management and Budget, writes within the memo that federal businesses ought to briefly pause grant and mortgage applications till Trump’s administration can guarantee they’re according to the president’s agenda, together with bans on variety, fairness and inclusion initiatives, and limits on clear vitality spending.

“The American people elected Donald J. Trump to be President of the United States and gave him a mandate to increase the impact of every federal tax dollar,” Vaeth wrote. “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.”

The memo states the order, which works into impact Tuesday, doesn’t have an effect on Social Security or Medicare recipients and that monetary help placed on maintain “does not include assistance provided directly to individuals,” based on The Washington Post.

Democrats warned that Trump’s newest directive may considerably hurt applications utilized by thousands and thousands of Americans, together with meals and lease help, early childhood applications, nonprofit organizations and youngsters’s medical insurance, amongst many others.

“They say this is only temporary, but no one should believe that,” Senate Minority Leader Chuck Schumer (D-N.Y.) mentioned in an announcement on Monday. “Donald Trump must direct his Administration to reverse course immediately and the taxpayers’ money should be distributed to the people.”

“These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities,” the senator added, warning the spending freeze will “mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities.”

Monday’s proclamation is just the newest Trump try to freeze federal authorities features. Last week, Trump ordered authorities businesses to pause different funds appropriated by Congress — together with key local weather investments, cash for infrastructure tasks and practically all U.S. help to international nations — difficult the constitutional position of Congress and its energy of the purse.

And over the weekend, Trump fired no less than 18 inspectors common whose job is to root out corruption in authorities businesses. He did it with out notifying Congress, a transfer critics denounced as a “chilling purge.”

Trump’s govt orders are more likely to face authorized challenges, however his intention isn’t tough to understand: an unprecedented effort to grab energy from a president much more unbound this time than throughout his first presidential time period.

“This is what we were worried about ― some enormous, broad thing that would stop funding for huge swaths of the government that he simply doesn’t like and doesn’t agree with,” Bobby Kogan, senior director of federal price range coverage on the liberal Center for American Progress, instructed HuffPost.

“He says he’s going after grants, loans and federal financial assistance, and he calls it three out of ten trillion dollars, so theoretically he’s pausing like a third of government funding ― which is illegal and massive,” Kogan added.

Trump and his allies have lengthy opposed the Impoundment Control Act, which units limits on how a lot a president can limit cash that’s been permitted by Congress. This newest order could also be designed to spark a authorized battle and make sure the Impoundment Control Act is reviewed by the U.S. Supreme Court, the place conservatives maintain a 6-3 majority.

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“The Trump Administration is ostentatiously flouting Congress’s power of the purse, which is one of the most basic principles of our republic,” Samuel Bagenstos, a University of Michigan regulation professor and former common counsel on the Department of Health and Human Services beneath President Joe Biden, instructed HuffPost. “It’s almost like they’re daring people to sue them so they can challenge the constitutionality of the Impoundment Control Act and get the Supreme Court to decide the issue as soon as possible.”

https://www.huffpost.com/entry/donald-trump-grants-loans-freeze_n_67984689e4b00dc186534c4f