Trump funding threat sends Mass. into red alert
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President Trump's move to pause federal loan, grant and financial assistance programs sent Beacon Hill, Massachusetts municipalities, and organizations that rely on federal dollars into tailspins Tuesday.
Why it matters: Federal funds are the backbone of the state's budget, providing money that flows into state and local programs covering everything from school meals to public safety.
- The White House said the pause will provide time to review federal agency spending and bring it in line with the law and Trump's priorities.
Threat level: Any interruption in federal dollars could destabilize programs many Bay State businesses, health care facilities, schools and programs rely on. Permanent reductions in aid could spell the end for some.
- Massachusetts expects to receive around $15 billion in federal reimbursements for the current fiscal year alone.
- Gov. Maura Healey warned of "devastating" consequences for the state if federal funds were broadly withheld. "It touches all aspects, which is why I don't understand this," Healey told reporters at the State House.
Driving the news: The Office of Management and Budget issued a memo Monday night directing federal agencies to "temporarily pause all activities related to obligation or disbursement of all Federal financial assistance."
- Then, a federal judge Tuesday evening blocked the funding freeze until at least Feb. 3, ruling that courts need time to consider the effects such a broad proposal would have.
- A follow-up memo from the White House yesterday clarified that its pause "does not apply across-the-board" and is "expressly limited" to areas like DEI programs targeted by Trump.
The other side: Revere U.S. Rep. Katherine Clark, the second highest-ranking Democrat in the House, on Tuesday said Trump is "stealing from taxpayers" by withholding bipartisan funding approved by Congress.
- Clark warned of "higher costs for parents, cuts for first responders, no school lunches for hungry kids, families and veterans without housing, homes without heat and businesses unable to meet payroll," if federal funding isn't released.