Paused pause? Michigan reeling from potential threat to federally-funded programs
A move by President Donald Trump's budget office to at least temporarily halt federal aid to programs produced profound uncertainty on Tuesday, drawing condemnation from Democratic members of Michigan's congressional delegation and prompting the state's top law enforcement officer to threaten legal action.
By the end of the day, the freeze on federal payments was at least temporarily delayed by a federal judge in Washington in response to a lawsuit from nonprofits, as the courts and those affected try to determine just what the memo means and if it passes constitutional muster at least on its face.
But that did little to clear up the confusion.
The federal Office of Management and Budget's (OMB) memo issued Monday ordered agencies to pause payments on grants, loans and other forms of federal assistance covered by Trump's recent spate of executive orders, including those covering programs related to gender, energy and the environment, and diversity and equity policies beginning at 5 p.m. Tuesday, according to a copy seen by Reuters. But it appeared to some to potentially go further since Trump's orders touched on myriad issues including government efficiency and declared emergencies in areas of border security and energy. The memo also ordered a review of federal payments "consistent with the president's policies and requirements," which could have been interpreted as going beyond those orders, since more continue to be issued.
For many, it initially raised fears that other programs — including those serving nutrition or health care needs for poorer individuals or families — might be impacted. White House press secretary Karoline Leavitt on Tuesday afternoon said that no individual assistance would be compromised but still left unclear just how widespread the funding freeze might be.
University of Michigan public policy professor Donald Moynihan described the memo, which was vague as to its scope, as highly unusual. "The pause on funding represents what amounts to a self-imposed government shutdown for a very large part of the government, featuring an extraordinary degree of uncertainty," he said.
More: Gretchen Whitmer reaches out to younger readers with YA version of bestseller 'True Gretch'
More: Officials strip affordable housing requirement for first District Detroit building
A chorus of Michigan Democrats blasted the directive as illegal, decrying it as a usurpation by the executive branch of Congress' spending power. "The Trump administration's unilateral move to block thousands of federal programs is clearly unlawful. This isn't a wonky, Washington conversation — there are real, actual effects that will harm Michigan and put a hold on federal dollars that were already awarded," said U.S. Sen. Elissa Slotkin, D-Holly, in a statement.
Others confirmed it had caused widespread confusion, with organizations that receive federal aid reaching out for any clarity as to if, how and when their funding might be affected. "My phone has not stopped ringing," said U.S. Rep. Debbie Dingell, D-Ann Arbor. "People don't know what this means."
Republicans, however, defended the freeze, saying in some cases its scope had been exaggerated. "The pause was never across-the-board," U.S. Rep. Lisa McClain, R-Bruce Township and a top member of House Republican leadership, said in a post on social media platform X. "This was fearmongering. President Trump rightfully has everyone talking about reexamining our country's spending priorities. We are trillions in debt."
The directive could see additional legal challenges.
Michigan Attorney General Dana Nessel said Tuesday she'd pursue a legal fight after receiving reports that programs — including Medicaid and Head Start — were impacted by the Trump administration's move.
Leavitt said Tuesday afternoon at her first briefing with the media that there is "no uncertainty" in the administration about what the instructions from OMB mean. "This is not a blanket pause on federal assistance and grant programs from the Trump administration," she said. "Individual assistance … assistance that is going directly to individuals, will not be impacted by this pause."
Still, the Trump administration's funding pause could reverberate across Michigan, affecting state, local and nonprofit programs and services that rely on federal support, stakeholders said Tuesday.
In state government, the freeze could potentially impact spending on a Michigan Department of Transportation program to support minority subcontractors, which accounted for $117.1 million in spending in 2024 but which MDOT officials said Friday they did not believe had been impacted by Trump's executive orders. The freeze could also potentially impact, at a minimum, any state grants related to diversity and equity programs, grants in support of refugees seeking asylum, and programs related to solar or wind energy or electric vehicles.
Michigan's 2025 budget totals about $81.2 billion, of which just under $33.9 billion, or 42%, comes from the federal government, according to the House Fiscal Agency. But not all of that federal money has been paused.
By state agency, the biggest recipients of federal funding are the Department of Health and Human Services ($26.6 billion); the Michigan Department of Transportation ($2.3 billion); School Aid ($2.3 billion); and the Department of Labor and Economic Opportunity ($1.2 billion). Next are the Department of Lifelong Education, Advancement and Potential ($505.4 million) and the Department of Environment, Great Lakes, and Energy ($463.8 million).
"The potential impact is huge," said Bob Schneider, a senior research associate at the Citizens Research Council of Michigan, though he also noted the freeze might apply to a more limited range of discretionary spending programs.
Michigan's State Budget Director Jen Flood underscored the importance of state funding in a statement Tuesday. "Federal funding is critical to protecting the health and safety of all Michiganders — ensuring drinking water is clean and food is safe, keeping people in their homes and the power on, and funding homeland security and emergency management," she said.
Universities across the state collectively receive millions in federal research grants, according to data compiled by the National Science Foundation. The University of Michigan alone received more than $1 billion in federal money last year. At Michigan State, federal grants topped $435 million. Wayne State received about $135 million, and Michigan Technological, Central Michigan and Western Michigan universities also received grants.
Several of the schools said they were aware of the order. "The university is in the process of reviewing the impact of executive orders and the pause in federal funding on the institution, and therefore we are unable to specifically comment on this directive," MSU spokeswoman Kim Ward Sutton said in a statement.
CMU President Neil MacKinnon told staffers in a note that the school was working with other schools and consultants to interpret the orders correctly. "At present, CMU is not required to make any immediate changes to comply with the new executive orders," MacKinnon said in a note also signed by Interim Provost Paula Lancaster and Shawna Patterson-Stephens, vice president for inclusive excellence and belonging. "There is currently no need to cancel previously planned programs and activities, nor to make changes to curriculum."
Michigan nonprofit leaders representing organizations working on a range of issues from refugee services to mental health said Tuesday they face uncharted territory.
Michigan Nonprofit Association (MNA) President and CEO Kelley Kuhn blasted the decision to pause federal funding allocations, saying the stoppage would affect a myriad of services for residents. It's not immediately clear how many Michigan nonprofits receive federal funding through the state's budget, the group said. "This reckless action by the administration could have serious consequences for nonprofit organizations and the people they serve," Kuhn said in a statement.
Joshua Traylor, executive director of the University of Michigan's nonprofit Center for Health and Research Transformation (CHRT), said it's not unusual for a pause in grant activity and communications to accompany a change in the federal administration as new political appointees take charge. "I think what is challenging with this announcement is the breadth," Traylor said. In general, he described the move as creating deep funding uncertainty for organizations. "You know it's a bit of a wait-and-see," Traylor said.
Common Ground — a nonprofit crisis services agency in Michigan — receives programming funds mostly through state and local sources, according to Chief External Relations Officer Jeff Kapuscinski. But the organization operates resiliency centers in communities impacted by mass shootings, including East Lansing, Oxford and Rochester Hills supported by the state through federal grant funding from the Antiterrorism and Emergency Assistance Program. It's not clear whether the centers could be affected by the funding freeze, Kapuscinski added.
The Refugee Education Center, a Grand Rapids-based nonprofit that provides educational services to refugee families in west Michigan, planned to continue operations despite the funding freeze, said Executive Director Meg Derrer. That programming includes early childhood programs, after-school programs for K-8 students and post-education transition planning programs for high school students.
The nonprofit is a recipient of the Office of Global Michigan's School Impact Grant, the funding for which Derrer said stems from federal dollars allocated through the Office of Refugee Resettlement.
The funding freeze, coupled with cancellations of flights for refugees already approved for resettlement in the U.S. last week, has created uncertainty for refugees and nonprofit organizations that help them navigate new communities, including in Michigan.
"We're living in a very liminal space, and it's very difficult," Derrer said.
Contact Clara Hendrickson at chendrickson@freepress.com or 313-296-5743.
This article originally appeared on Detroit Free Press: Michigan reels from potential federal funding threat
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CBS News
14 minutes ago
- CBS News
GOP leaders cite L.A. immigration protests to push for quick passage of Trump's "big, beautiful bill"
Washington — The White House and Republican leaders in Congress are urging lawmakers to quickly get behind the centerpiece of President Trump's legislative agenda, saying the ongoing immigration protests in Los Angeles adds urgency to the push to secure additional resources for border security. House Speaker Mike Johnson said on X on Monday that the legislation, which addresses Mr. Trump's tax, energy and immigration priorities, "provides the ESSENTIAL funding needed to secure our nation[']s borders." Republicans call the legislation the "one big, beautiful bill." "The lawlessness happening in LA is ANOTHER reason why we need to pass the One Big Beautiful Bill IMMEDIATELY," Johnson said, pledging that Congress will support Immigration and Customs Enforcement agents who he said are "fighting to keep Americans safe against illegal aliens AND the radical left." White House press secretary Karoline Leavitt shared a similar message earlier Monday, saying the scenes unfolding in some areas of Los Angeles "prove that we desperately need more immigration enforcement personnel and resources." "America must reverse the invasion unleashed by Joe Biden of millions of unvetted illegal aliens into our country," Leavitt said in a post on X. "That's why President Trump's One Big, Beautiful Bill funds at least one million annual removals and hires 10,000 new ICE personnel, 5,000 new customs officers, and 3,000 new Border Patrol agents." Speaker of the House Mike Johnson holds a press conference after the House narrowly passed a bill forwarding President Trump's agenda at the U.S. Capitol on May 22, 2025, in Washington, legislation is now in the hands of the Senate after the House narrowly approved it last month following weeks of intraparty disagreement over its components. Though the bulk of the funding allocated in the legislation goes toward tax cuts, it also includes resources aimed at bolstering border security and defense. It provides $46.5 billion for the border wall, $4.1 billion to hire Border Patrol agents and other personnel and more than $2 billion for signing and retention bonuses for agents. It also imposes an additional $1,000 fee for people who are filing for asylum in the U.S. The disagreement among Republicans over the bill has largely centered on cuts meant to offset the bill's spending, including restrictions to Medicaid. In the House's razor-thin GOP majority, the disagreements threatened to tank the bill's progress at every stage. And as the bill moved to the Senate for consideration last week, Johnson warned the upper chamber against making significant changes that would throw off the delicate balance. Senate Republicans initially voiced support for separating the complicated tax components and border security provisions into two separate bills to deliver Mr. Trump a victory on immigration early on in his tenure. But House Republicans opposed the approach, expressing doubts that the president's agenda could pass through the narrow GOP majority in the lower chamber in separate parts. Senate Republicans are now seeking to amend the House-passed bill, sending it back to the House for approval with a goal of getting the legislation to the president's desk by the July 4 holiday. And with a 53-seat majority, the upper chamber can afford to lose just three Republicans. Last week, opposition from Elon Musk threatened to throw a wrench into the legislation's progress, after he stoked concerns by fiscal hawks about the bill's impact on the deficit. The episode, which began with Musk calling the bill "a disgusting abomination," erupted into a dramatic and public feud between Musk and the president last week. But the dispute did not appear to spark significant new opposition the the bill in Congress. The urgency expressed Monday surrounding securing additional border resources comes as Mr. Trump called for the National Guard to enforce order in the L.A. area amid protests over activity by ICE, prompting a clash with California Gov. Gavin Newsom. Newsom warned that the move would inflame the situation, while urging that there is no shortage of law enforcement. The governor indicated late Sunday that his office plans to sue the Trump administration over Mr. Trump's move. Department of Homeland Security Secretary Kristi Noem defended the president's move on "Face the Nation with Margaret Brennan" Sunday, claiming Newsom "has proven that he makes bad decisions." "The president knows that [Newsom] makes bad decisions, and that's why the president chose the safety of this community over waiting for Gov. Newsom to get some sanity," Noem added.
Yahoo
18 minutes ago
- Yahoo
Kash Patel Sends Ominous Threat in Response to L.A. Protests
The FBI says it will act on its own to squash the Los Angeles anti-ICE protests. FBI Director Kash Patel issued an ominous threat to the city and its residents late Sunday night, claiming that his agency would intervene in the multiday anti-Trump display without explicit direction. 'Just so we are clear, this FBI needs no one's permission to enforce the constitution,' Patel posted on X. 'My responsibility is to the American people, not political punch lines. LA is under siege by marauding criminals, and we will restore law and order. I'm not asking you, I'm telling you.' In a move that Homeland Security Secretary Kristi Noem should agree with, California announced it would sue the federal government Monday, arguing that the Trump administration's order to send hundreds of National Guard troops toward Los Angeles, without coordination with the state's governor, was an unconstitutional breach of power. Hours earlier, FBI Public Affairs Assistant Director Ben Williamson shared that Patel had gotten off a call with 'senior leadership' addressing what they referred to as 'riots' in L.A., specifying that Patel and FBI Deputy Director Dan Bongino had 'offered all necessary resources from FBI HQ' to address the situation. Williamson said the pair 'reiterated the position that any perpetrator who attacks or interferes with law enforcement will be aggressively pursued and brought to justice.' Bongino made it plain that one of the agency's primary targets would be individuals suspected of assaulting officers, writing on X that he and Patel had notified all FBI teams to pursue suspected individuals 'long after order is firmly established.' 'We will not forget. Even after you try to,' Bongino posted. But Republicans have so far not been very successful at pinpointing wrongdoing in Los Angeles. Instead, some viral videos circulating in conservative circles of protest-related violence in the city are actually not from the weekend at all, but were instead taken in 2020 during the Black Lives Matter protests.
Yahoo
18 minutes ago
- Yahoo
500 Marines ‘prepared to deploy' to LA: Northern Command
Approximately 500 U.S. Marines are 'prepared to deploy' to Los Angeles amid rising tensions between protesters and law enforcement over President Trump's immigration policies, according to a statement from U.S. Northern Command. The Marines are 'in a prepared to deploy status should they be necessary to augment and support the [Defense Department's] protection of federal property and personnel efforts,' reads the statement released Sunday. The notice came a day after Trump announced he had authorized the deployment of approximately 2,000 California Army National Guard troops, 300 of whom were deployed Sunday at three locations in the Los Angeles area: Los Angeles, Paramount and Compton. The federalization of the California National Guard represents a rare and legally murky step that bypassed the consent of California Gov. Gavin Newsom (D), who said Sunday evening that he plans to bring a lawsuit against the Trump administration for bypassing him. The last time the federal government mobilized National Guard members without the consent of a governor was in 1965, when former President Lyndon Johnson sent Guard members to Selma, Ala., to protect civil rights protesters there. The National Guard is relatively limited in its scope, since members are deployed specifically to protect federal buildings, which includes the downtown Los Angeles detention center where much of the unrest centered. The military is generally barred from carrying out domestic law enforcement duties. Declaring the Insurrection Act is seen as a potential path around those restrictions. Trump did not rule out invoking the Insurrection Act during a gaggle with reporters before boarding Air Force One on Sunday, but he suggested the current protests against immigration raids had not yet risen to insurrection. Shortly after the gaggle, Trump issued a statement on Truth Social claiming that 'violent, insurrectionist mobs are swarming and attacking our Federal Agents to try and stop our deportation operations.' He said he directed relevant Cabinet officials, including Defense Secretary Pete Hegseth, 'to take all such action necessary to liberate Los Angeles from the Migrant Invasion, and put an end to these Migrant riots.' Hegseth said Sunday morning that Marines were ready to be deployed to Los Angeles if needed. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.