Trump's funding pause plan sends Minnesota officials scrambling

Axios

29-01-2025

President Trump's proposed federal funding pause sowed confusion and concern across Minnesota on Tuesday.
The latest: A federal judge temporarily blocked the president's attempt to halt federal grant, loan and financial assistance programs just minutes before it was supposed to take effect.
That administrative stay, which expires Monday, came just about an hour after Minnesota announced it would join about two dozen other states in suing the Trump administration over the cuts.
Why it matters: Tens of billions of dollars in federal funds flow into Minnesota each year, fueling everything from new roads and police officer recruitment to cancer research and health clinics.
Catch up fast: The temporary pause, outlined in a memo from the White House Office of Management and Budget, is designed to give the new administration time to review agency spending.
The announcement caused widespread confusion and panic among groups and governments that rely on the funds, even as the White House clarified that it didn't apply "across the board" and said it wouldn't impact programs like Social Security, Medicaid and student loans.
Threat level: Gov. Tim Walz said at a Tuesday press conference that while Minnesota is still looking for answers on the extent of the impact, more than 1,000 programs and employees could be cut off without additional guidance.
A full stoppage of federal funds could create a monthly budget hole of between $800 million and $1.9 billion, his top budget official said.
Zoom in: Some recipients of federal funds were bracing for impacts of the potential cuts before the temporary block was announced.
U.S. Rep. Angie Craig posted on social media that two cities in her suburban district had been notified that grants for their local law enforcement agencies have been put on hold.
Longer term, local governments are concerned about "far-reaching impacts" on budgets and projects, a lobbyist for the League of Minnesota Cities told the Star Tribune.
What they're saying: Walz said he and other governors had spent the last 24 hours seeking guidance on how to comply with what he characterized as a "reckless" and "unconstitutional" order.
Adding to the confusion, top state budget officials said they were temporarily unable to access portals for Medicaid, Unemployment Insurance and the Head Start early education program on Tuesday.
The other side: GOP U.S. Rep. Tom Emmer, a staunch Trump ally, told Politico that the president is following through on his pledge to shake up the status quo.
GOP state Sen. Eric Pratt urged patience, saying he expects more clarity and guidance that will help the state ensure "vital programs are uninterrupted."
What to expect: More legal action and a pitched political battle over the plan.
Axios' Andrew Solender contributed reporting.