The Freeze on Federal Assistance
By Barbara Heimlich
Editor
The Trump administration created budgetary chaos in Connecticut and across the nation Tuesday. Matthew Vaeth, Acting Director of the White House Office of Management and Budget, issued a 2-page memo announcing its intention to pause all federal grants at 5 p.m. so that all spending could be assessed under a litmus test from the president, targeting his culture-war concerns.
On Wednesday, Vaeth walked back the memo that ordered a freeze on federal assistance, less than two days after the directive was issued. This led to chaos and confusion around the country as to what programs would feel the impact. According to CBS News, the latest two-line memo from Vaeth states that the earlier directive is rescinded. It directs those with questions about implementing President Trump’s executive orders to contact the general counsels at their agencies.
“In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling, and the dishonest media coverage,” said White House press secretary Karoline Leavitt on Wednesday. “The executive orders issued by the president on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments. This action should effectively end the court case and allow the government to focus on enforcing the president’s orders on controlling federal spending.” Leavitt, who was a Fox New Intern, has been serving under President Donald Trump since January 20, 2025, as the 36th White House press secretary. Wikipedia
In the two-page letter from Vaeth, he said that as of 5 p.m. Tuesday, federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI (Diversity, Equity, and Inclusion), woke gender ideology, and the green new deal.
“Woke mind virus is a neologism [new word or expression] popular with right-leaning and conservative commentators, especially in the United States. The term is used to refer to anything which is perceived to be closely connected to left-wing politics. According to Elon Musk, who popularized the term in 2021, this also includes actions or ideas believed to threaten freedom of speech. Florida governor and former presidential candidate Ron DeSantis has frequently used the term, referring to his state as a place “where woke goes to die.” Wikipedia
According to the Sierra Club, “a Green New Deal is a big, bold transformation of the economy to tackle the twin crises of inequality and climate change. It would mobilize vast public resources to help us transition from an economy built on exploitation and fossil fuels to one driven by dignified work and clean energy.”
US District Judge Loren L. AliKhan blocked the freeze, at least temporarily, as the memo sparked numerous lawsuits, including from a coalition of nonprofits and Democratic state attorneys general, including our Attorney General William Tong.
Judge AliKhan, a federal judge in Washington, D.C., swiftly convened a hearing on a request from the nonprofit groups to temporarily block enforcement of the freeze, and agreed Tuesday to issue a brief pause to fully consider the matter, in response to a lawsuit from a group of agencies led by the National Council of Nonprofits. The judge ordered the parties back to court at 11 a.m. on Monday, February 3.
National Council of Nonprofits President and CEO Diane Yentel released the following statement: “We are glad that this memo has been rescinded. The chaos unleashed by the uncertainty and lack of adequate notice yesterday should never have happened. Nonprofits are vital partners for government, and payment for the services they provide should never have been in question. Nonprofit organizations throughout the country and the people they serve can breathe a sigh of relief now that the White House has, at least for now, backed off its reckless and harmful plan to halt all federal funding for critical programs from homelessness and housing assistance, to disaster relief and rebuilding, to rape crisis centers and suicide hotlines.
“Right now, we will celebrate this victory for nonprofits and the people they serve across the country. But we will remain vigilant for any further actions that harm nonprofits’ ability to serve their communities.” They argued that the Trump administration’s action was “arbitrary and capricious, violates the First Amendment of the United States Constitution, and exceeded OMB’s statutory authority.”
If implemented, the freeze could still have dramatic consequences for Connecticut non-profits, many of which rely heavily on federal funding. Gian-Carl Casa, president of the Connecticut Community Nonprofit Alliance, said even a temporary pause would “help rip a tear into the state’s safety net services.”
“We’re talking about families who need shelter or food, people who have mental health or substance abuse treatment needs, people with disabilities who get services,” Casa said. “To take such steps without regard to the wellbeing of living, breathing people who are in need of help is beyond comprehension.” Casa warned that, for example, a loss of funding for homeless shelters could leave families outside in the winter cold.
Connecticut Attorney General William Tong announced that the state had joined a coalition of 22 attorneys general suing to stop the implementation of Trump’s OMB memo, arguing that it puts an indefinite pause on the majority of federal assistance to states, immediately jeopardizing critical state programs that provide health and childcare services to families in need, support public schools, combat hate crimes and violence against women, provide life-saving disaster relief to states, and more.
“This is a full assault on Connecticut families – an unprecedented and blatantly lawless attack on every corner and level of our government and economy. Connecticut is locked arm in arm with states across the nation seeking an immediate restraining order to protect critical services that each and every one of us rely on every day,” Tong said in a statement. “Today is not a day for politics – everyone, irrespective of party, should be standing against this devastating attack on Connecticut.
Health organizations nationwide have been thrown into chaos after Federal financial assistance programs became disrupted following President Donald Trump’s directive to freeze funding across multiple agencies, including Medicaid.”
But not all of them. House Minority Leader Vincent Candelora, R-North Branford, and Senate Minority Leader Stephen Harding, R-Brookfield, described the Democrats’ reaction to the memo was “theatrics” in an emailed statement. (Alex Putterman, CT Insider)
“It’s no surprise that Connecticut Democrats, showcasing their penchant for theatrics over substance, are raising alarm over President Trump’s common-sense efforts to ensure tax dollars are spent wisely and align with his executive actions,” they wrote. “After all, these are the same individuals who believe taxpayers should foot the bill for placing tampons in boys’ bathrooms in our schools. Let’s be clear: the President’s federal funding pause is far from the doomsday scenario Democrats are peddling. Their claims are nothing more than an attempt to gaslight Connecticut residents. If Attorney General Tong and other Democrat leaders invested half as much effort into lowering costs for electric ratepayers as they do defending criminal illegal aliens and librarians promoting sexualized content in schools, Connecticut families would be far better off.”
Economic Impact
President Donald Trump is calling for the elimination of federal income tax, advocating for a tariff system to generate revenue. Many economists question how tariffs could account for the nearly $5 trillion in revenue that the federal government collects in income tax each year. Supporters argue that ending income tax would simplify the system, ease the burden on American workers, and boost domestic manufacturing by making imports more expensive. However, critics warn that higher tariffs could raise consumer prices, putting more financial strain on low- and middle-income Americans.
The Trump administration is moving to reduce the size of the federal workforce, which consists of approximately two million civilian employees. They plan to offer buyouts to federal workers who don’t want to return to in-office work, reversing remote work policies from the COVID-19 pandemic. The buyout package, which includes roughly eight months of salary and benefits, is designed to lower government payroll costs and save taxpayer money. Estimates suggest that 5 percent to 10 percent of federal employees may accept the offer, potentially saving around $100 billion annually, according to NBC News.
Economists are starting to model the effects of President Donald Trump’s plans to raise tariffs, cut taxes and restrict immigration. The upshot: Inflation and interest rates are likely to be higher for at least the next two years than forecasters anticipated before the election. (Wall Street Journal)
The proposed federal job cuts have also raised concerns about the impact on government services. With thousands of employees potentially taking buyouts, questions remain about how agencies will maintain essential operations — from Social Security processing to veterans’ services.
ICE in Stratford Schools
The Trump administration removed restrictions that prevented Immigration and Customs Enforcement from conducting raids at so-called “sensitive locations,” including schools, as well as houses of worship and hospitals. ICE agents have been seen in Connecticut this week, including in East Hartford, New London, Waterbury, Willimantic, Stamford, Bridgeport, and Windham.
The guidelines rolled out by Connecticut school officials come amid new quotas for federal authorities to boost arrests. Each U.S. Immigration and Customs Enforcement field house — 25 scattered around the country — arrested more than 5,500 people in the first week of Trump’s presidency, according to ABC News — nearly tripling the number of arrests in an average week during Joe Biden’s term. NBC News reported the agency has a daily quota of 1,250 to 1,500 arrests daily under newly established quotas by the Trump administration.
The Migration Policy Institute, an independent think tank focused on immigration policies, estimates around 733,000 school-aged children live in the United States without legal status. The same think tank estimates that 32,000 undocumented people in Connecticut live with at least one U.S. citizen child under 18.
According to the U.S. Education Department, children in the United States are entitled to public education under a U.S. Supreme Court decision in 1982, stating that undocumented students who reside in a school district are entitled to attend school in that district, regardless of their “immigration status”. The decision has long allowed public school districts to largely avoid asking about or keeping records of their pupils’ standing with immigration laws.
Another federal law, the Family Educational Rights and Privacy Act, keeps most student information confidential without parents’ permission to release it. Connecticut school officials said if a school district were to receive any requests for student information, they would have to consult guidance provided by the district’s legal counsel, and adhere to the scope of these protections.
New guidelines rolled out by the Connecticut State Department of Education include requesting and recording immigration agents’ identification, including their name, badge or ID number, telephone number and business card when they enter a school. In addition, public school districts are being encouraged to designate a school official as the point person for requests and visits by ICE agents.
According to Heather Borges, Acting Assistant Superintendent of Staff and Student Services for Stratford Public Schools, “Stratford Public Schools remains committed to supporting all of our students and families. Our administration has worked collaboratively to ensure that our policies align with both state guidelines and our existing Policy 5111.3: Undocumented Students. A letter was recently sent home to families reaffirming our commitment to student safety and outlining our protocols. Per district policy, the Acting Superintendent serves as the point person for any interactions with ICE, ensuring all inquiries follow proper legal procedures.”
Original Vaeth Memo:
