How Trump's federal spending freeze could impact Michigan

Yahoo

29-01-2025

Former President Donald Trump speaks at a rally on Saginaw Valley State University campus in Michigan on Oct. 3, 2024 ahead of the presidential election | Photo: Anna Liz Nichols
Just as a sudden federal funding freeze from the Trump administration was set to go into effect Tuesday evening, a federal judge temporarily blocked the move that would cut off funding to an array of programs and grants around the country.
But the pause is only until Monday. And Michigan agencies, elected officials and nonprofits are scrambling to understand what programs are on the chopping block as online systems for Medicaid and early education programs that utilize federal dollars have suffered outages across the country since the Trump administration issued the freeze on Monday.
Judge temporarily blocks Trump administration freeze on broad swath of federal payments
The two-page memo from Matthew J. Vaeth, acting director of the Office of Management and Budget (OMB), outlines how evaluating programs and trimming down federal spending on unnecessary or redundant endeavors will improve government efficiency and help align spending to the values of President Donald Trump's administration.
'Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending 'wokeness' and the weaponization of government, promoting efficiency in government, and Making America Healthy Again,' Vaeth said.
It was a decision sprung on the country suddenly that will have immediate and harsh consequences for those most vulnerable in Michigan, Michigan Nonprofit Association (MNA) President Kelley Kuhn said.
'Putting a pause on things can impact critical services like cancer research, housing and food assistance, Head Start preschool programs, shelters. I mean, the list goes on and on, as far as the implications that could be felt in communities as a result of this,' Kuhn said.
When thinking about how far-reaching the impending pause could be, it's important to note that more than 40% of Michigan families struggle on a month-to-month basis to cover their basic needs of living, said Monique Stanton, president of the Michigan League for Public Policy (MLPP).
Kids, in particular, would likely suffer some of the harshest consequences if medical, educational and nutritional programming was halted, Stanton said, pointing out that more than 30,000 K-12 students in Michigan are experiencing homelessness and nearly half of children in Michigan are insured through Medicaid.
And amid the onslaught of executive orders Trump is issuing, including Monday's order to cut Diversity, Equity and Inclusion (DEI) policies and offices, the motive for the federal funding pause is clear, Stanton said: He's trying to break people.
'This pause is really a tactic designed to exhaust organizations, exhaust advocates, pit people against each other,' Stanton said. 'It's really important that organizations don't fall for the tactic to allow themselves to be pitted against each other. We are standing firm with organizations across Michigan saying this is unacceptable for the sector and for the people of our state.'
Some Michigan Democratic elected officials have railed against the funding freeze, with Attorney General Dana Nessel joining 21 other attorneys general to sue the Trump administration.
Harm is imminent for millions of Michigan residents who rely on programs that Congress saw fit to fund, Nessel said in a video statement Tuesday. And while her office and the rest of the state is trying to get a handle on the full impact the freeze proposes, the reality is people will suffer.
'This isn't just some bureaucratic issue; it's a human crisis,' Nessel said. 'Let me be clear, this freeze is not just some policy shift, it's an attack on the very safety net that millions of Americans, including Michiganders, rely upon, and we're hearing from schools, families and law enforcement about the immediate harm this is already causing.'
Real people will be impacted by blocking federal programming, newly elected U.S. Sen. Elissa Slotkin (D-Holly) said in a social media thread on Tuesday. She added that those in the Trump administration who are unilaterally backing the 'unlawful' barriers on federal funds need to remember that their oaths to public service were to the U.S. Constitution, not Trump.
'My office is inundated w/ questions from mayors of both parties, universities, veteran care and nursing homes, people who have had cancer trials stopped, child care centers, farmer programs, Army contracts – all fearful that they will need to take action to end programs & grants,' Slotkin wrotes. 'This administration, like every administration, must follow the law, and the law says that money is appropriated by Congress.'
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