Chaos, Confusion In Texas Over Trump Federal Funding Freeze

Chaos, Confusion In Texas Over Trump Federal Funding Freeze
Photo by Andy Feliciotti / Unsplash

Several Democratic lawmakers in Texas have been sounding the alarm over a devastating directive from the White House Office of Management of Budget that was ordered Monday evening. They are warning that a federal funding freeze ordered by Trump’s OMB could wreak havoc on many programs Texans depend on to combat childhood hunger, homelessness, domestic violence support and even Medicaid. 

The memo, which was first published on Bluesky by independent journalist Marisa Kabas, mandates a temporary pause to “all activities related to obligations or disbursement of all federal financial assistance.” The memo was written by Matthew Vaeth, the acting director of the White House OMB.

In the memo, Vaeth calls upon all federal agencies to “identify and review all federal assistance programs and supporting activities” so they align with the Trump agenda. The memo also cites several areas a Trump OMB is targeting like the Green New Ideal and “woke” ideology.

The broadly written two-page memo caused immediate chaos and confusion. Many congressional offices were reporting overwhelming phone calls from constituents over the potential impact and how to comply. Nonprofits were calling it catastrophic. As of Tuesday afternoon, all state Medicaid portals were down.  

Congressman Lloyd Doggett, who represents Central Texas, issued a statement blasting the entire directive. “He has hit our community directly with an authoritarian decree abruptly halting most all federal loans, grants, and aid impairing work at our schools and universities, community health centers, a large number of vital social service nonprofits, and local governments,” he wrote. Doggett also noted that this decree comes just days after National Institutes of Health had their grants paused, a major blow to the University of Texas. 

Congressman Greg Casar, who is also the chair of the Congressional Progressive Caucus, similarly lambasted the federal funding freeze but also indicated these actions are illegal. “Trump is ignoring the Constitution and slashing the funds that pay for firefighter and police salaries, and his excuse is ‘DEI’ and ‘wokeness,’” said Casar in a statement. 

A legal challenge to the federal funding freeze was underway Tuesday afternoon from a coalition of states including New York, Illinois, and Massachusetts. Harris County Attorney Christian Menefee also indicated that his office is “exploring legal options” about the overreach.