Latest news with #MatthewJ.Vaeth
Yahoo
29-01-2025
- Politics
- Yahoo
White House rescinds federal aid freeze proposal day after judge temporarily halted it
Jan. 29 (UPI) -- The White House budget office Wednesday rescinded its controversial federal aid freeze, according to multiple media reports citing an administration memo. The memo from White House Office of Management and Budget Office acting director Matthew J. Vaeth said the order freezing the aid "is rescinded." The Washington Post, NBC News, and CNN were among media outlets reporting that the freeze, already temporarily halted by court action, was rescinded. Federal Judge Loren Alikhan had granted a motion to temporarily halt the freeze Tuesday. This week's sudden order freezing the aid triggered chaos as it appeared to endanger government programs for schools, housing and healthcare for low-income Americans. State access to Medicaid funding also had reported issues, as well. The memo rescinding the freeze came just a day after the federal judge stopped it temporarily. The controversial order paralyzed many federal programs, causing an uproar on Capitol Hill. The Hill, citing an anonymous GOP senator, said Republican lawmakers strongly opposed the freeze order. That senator noted that "chaos is never good." The senator said many Republican lawmakers were flooded with calls opposing the freeze.
Yahoo
29-01-2025
- Politics
- Yahoo
White House rolls back its federal grant freeze
The White House's pause on federal grants and loans appears to be over. A memo sent by Matthew J. Vaeth at the OMB on Wednesday says that the memorandum is no longer in effect. The pause sparked confusion, as organizations scrambled to figure out the state of their funding. The White House's controversial pause on federal grants and loans appears to be over.A memo sent by Matthew J. Vaeth at the Office of Management and Budget on Wednesday, January 29, and addressed to the heads of executive departments and agencies, says that the memorandum is no longer in effect. "OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President's Executive Orders, please contact your agency General Counsel," the memo, seen by Business Insider, reads. White House press secretary Karoline Leavitt confirmed that the OMB order had been withdrawn. She said Trump's earlier executive orders, which imposed a freeze on new regulations and terminated diversity, equity, and inclusion programs, remain in effect. "This is NOT a rescission of the federal funding freeze," Leavitt wrote on X. "It is simply a rescission of the OMB memo. Why? To end any confusion created by the court's injunction. The President's EO's on federal funding remain in full force and effect, and will be rigorously implemented." Democratic lawmakers quickly took a victory lap, celebrating the OMB order's demise. "This is Trump's first major loss. When we fight, we win," Rep. Alexandria Ocasio-Cortez of New York wrote on X. Congressional lawmakers, including some Republicans, expressed confusion over the extent of the initial memo. Popular charities, including Meals on Wheels, were unclear if the federal grants they received would continue to keep money following. Lawyers advised NGOs to ensure they had enough cash to wait out the pause. M-25-13 was the memo that the OMB, which oversees federal agencies and the federal budget, sent out Monday, pausing nearly all federal grants and loans. It was meant to go into effect at 5 p.m. on Tuesday, but a federal judge temporarily stopped it. The Trump administration, the Office of Management and Budget, and the Office of Personnel Management did not respond to a request for comment from BI. Trump repeatedly said on the campaign trail that he would test the extent of presidential power to cut federal spending unilaterally. He and his allies view a Nixon-era law as unconstitutional, and the initial OMB memo appeared to defy the law that leaves the executive branch only narrow grounds to refuse to spend funds approved by Congress. This is a developing story. Please check back for updates. Read the original article on Business Insider
USA Today
28-01-2025
- Politics
- USA Today
UNR waits to see how Trump's funding freezes could affect campus
This is a breaking news story and will be updated. The University of Nevada, Reno said it is closely monitoring all presidential executive actions after President Donald Trump ordered the freezing of trillions of dollars in federal grants and loans beginning Tuesday. The Washoe County School District has not responded to a request for how it may have to navigate a freeze in federal funds and what could be affected. In a memo sent Monday by acting director of the Office of Management and Budget Matthew J. Vaeth, federal agencies were told to pause all activities related to the disbursement of federal financial assistance. It's unknown what the immediate effects would be to programs. Programs such as Social Security, Medicaid and student loans are not expected to be affected despite some sites, including Medicaid in Nevada, being down on Tuesday. While the memo didn't say specifically which programs would be affected, many at risk seem to fall in line with Trump's campaign promises. Federal agency officials have until Feb. 7 to respond to a list of questions about whether certain programs support or provide services, 'either directly or indirectly, to removable illegal aliens.' The instructions also ask whether the programs 'promote gender ideology,' 'promote or support" abortion "in any way,' or 'provide funding that is implicated by the directive to end discriminatory programs, including illegal DEI and 'diversity, equity, inclusion, and accessibility' (DEIA) mandates.' "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 from the president's office said. "The situation is still fluid, and it is not quite readily apparent what the long-term implications will be," UNR said in response to how programs could be affected at UNR or the state's other public institutions. In a letter sent to campus last week, UNR President Brian Sandoval said UNR is monitoring presidential executive actions closely. "I wish to make it clear to everyone on our campus – students, faculty and staff -- that the University is dedicated to maintaining an environment in which the members of our campus community feel safe, supported and encouraged to actively pursue their educational and professional goals," he wrote. "The University has made a commitment to provide our undocumented and DACA students with a number of resources needed to successfully navigate the often-complex path in reaching graduation – academic support, educational protections and benefits, legal support, mental health support and more." USA Today contributed to this story.
Yahoo
28-01-2025
- Business
- Yahoo
Trump's order to freeze federal grants threatens Medicaid, student loans: What we know so far
State and local governments have been thrown into chaos trying to interpret a pause in hundreds of billions of dollars worth of grants, loans, and other federal financial assistance ordered by the White House Office of Management and Budget (OMB) Monday night. It is unclear how far-reaching the freeze is. But Americans of all ages, incomes, and careers could be impacted if the order goes into effect 5 p.m. Tuesday as planned, with low-income Americans getting hit particularly hard. A coalition of states led by New York is expected to sue to block the order on the grounds that the executive branch cannot unilaterally block congressional appropriations and money already approved under existing law. "It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to nonprofit charities, state disaster assistance, local law enforcement, aid to the elderly, and food for those in need," said Senate Minority Leader Chuck Schumer (D-N.Y.). The spending freeze was ordered in a memo from Matthew J. Vaeth, acting director of the OMB. It tells federal agencies to "temporarily pause all activities related to obligation or disbursement of all federal financial assistance." The memo says the freeze is necessary so Federal agencies can "identify and review all Federal financial assistance programs and supporting activities [are] consistent with the President's policies and requirements." Government officials, policy experts, and nonprofits are still trying to work out exactly what the order would apply to and what would be exempt. While it states that Medicare and Social Security benefits and assistance provided directly to individuals should not be impacted, it does not specifically mention an exclusion for Medicaid, and states are reporting that they are locked out of the health insurance program. It is possible that federal housing assistance and disaster relief programs could also be disrupted, impacting tens of millions of Americans. Sen. Bernie Sanders (I-Vt.), called the order "blatantly unconstitutional." "Our Founding Fathers explicitly gave Congress the power of the purse," Sanders said in a statement. "Under our system of checks and balances, no president has the right to choose which laws to follow and which laws to ignore." The memo says the Trump administration can provide exemptions "on a case-by-case basis." Here are some of the programs that could be immediately impacted. While Social Security and Medicare payments were exempted from the order, Medicaid was not named in it. States including Illinois say they have been locked out of their accounts. Medicaid provides health insurance for around 80 million children, pregnant women, low income adults, seniors, and disabled people across the country. The Centers for Medicare and Medicaid Services did not immediately respond to a request for comment about whether or not it was impacted by the freeze. Medicaid is the largest source of federal funding states receive, and any disruption "will cause chaos and disrupt access to needed care," Joan Alker, executive director of the Georgetown University Center for Children and Families, said in a statement, adding that "the mere suggestion of such a pause will cause panic." A follow-up memo released by OMB Tuesday said "mandatory programs" including Medicaid would not be disrupted. But state portals were down. Owing to the vague nature of the order, many students relying on federal student aid expressed confusion and fear that federal student loans and Pell grants would be impacted by the freeze. But the U.S. Department of Education said Tuesday that the pause does not apply to federal student loans or Pell grants. 'The funding pause directed by the Jan. 27, 2025, OMB memorandum only applies to discretionary grants at the Department of Education," said Madi Biedermann, spokesperson for the U.S. Department of Education. "These will be reviewed by department leadership for alignment with Trump administration priorities." The Student Borrower Protection Center, a nonprofit that advocates for student loan borrowers, said in a statement Tuesday that despite the administration saying student loans would not be affected by the order, it will still harm working families from "suburban, rural, and urban communities alike." "Regardless of these updates, it is clear that policymakers must secure firm commitments from Trump administration nominees that they will reject these attacks on working families," the press release reads. Sanders pointed to community health centers, which provide primary health care to more than 30 million Americans and rely on federal funds. WIC provides nutrition assistance to pregnant mothers and babies and could be impacted, says Sanders. This program provides assistance for heating and cooling bills to millions of seniors and families with children and could be impacted, according to Sanders. This story was originally featured on
NBC News
28-01-2025
- Business
- NBC News
White House freeze on federal aid will not affect student loans, Education Department says
The White House on Monday ordered a pause on federal grants and loans, according to a memo, but the Department of Education said the freeze will not affect student loans or financial aid for college. The freeze, which could affect billions of dollars in aid, noted an exception for Social Security and Medicare. The pause 'does not include assistance provided directly to individuals,' according to the memo. The pause gives the White House time to review government funding for causes that don't fit with President Donald Trump 's policy agenda, according to Matthew J. Vaeth, acting director of the White House Office of Management and Budget. The memo specifically cited 'financial assistance for foreign aid, non-governmental organizations, DEI, woke gender ideology, and the green new deal.' What student aid may be affected The U.S. Department of Education said the freeze on federal aid will not affect federal Pell Grants and student loans. It also has no bearing on the Free Application for Federal Student Aid for the upcoming year. 'The temporary pause does not impact Title I, IDEA, or other formula grants, nor does it apply to Federal Pell Grants and Direct Loans under Title IV [of the Higher Education Act],' Education Department spokesperson Madi Biedermann said in a statement. In addition to the federal financial aid programs that fall under Title IV, Title I provides financial assistance to school districts with children from low-income families. The Individuals with Disabilities Education Act, or IDEA, provides funding for students with disabilities. The funding pause 'only applies to discretionary grants at the Department of Education,' Biedermann said. 'These will be reviewed by Department leadership for alignment with Trump Administration priorities.' The pause could affect federal work-study programs and the Federal Supplemental Educational Opportunity Grant, which are provided in bulk to colleges to provide to students, according to higher education expert Mark Kantrowitz. However, many colleges have already drawn down their funds for the spring term, so this might not affect even that aid, he said. It may still affect grants to researchers, which often include funding for graduate research assistantships, he added. Why the freeze caused confusion 'While the memo says the funding pause does not include assistance 'provided directly to individuals,' it does not clarify whether that includes money sent first to institutions, states or organizations and then provided to students,' said Karen McCarthy, vice president of public policy and federal relations at the National Association of Student Financial Aid Administrators. Most federal financial aid programs are considered Title IV funds 'labeled for individual students' and so would not be affected by the pause, McCarthy said, but all other aid outside Title IV is unclear. 'We are also researching the impact on campus-based aid programs since they are funded differently,' she said. 'When you have programs that are serving 20 million students, there are a lot of questions, understandably,' said Jonathan Riskind, a vice president at the American Council on Education. 'It is really, really damaging for students and institutions to have this level of uncertainty.' Ted Mitchell, president of the American Council on Education, called on the Trump administration to rescind the memo. 'This is bad public policy, and it will have a direct impact on the funds that support students and research,' he said. 'The longer this goes on, the greater the damage will be.'
