What does Trump’s federal funding freeze mean for people who get aid?
A White House Memorandum Order is widely frozen Before 5 pm on Tuesday, ordinary Americans relied on such assistance on federal donations and loans. Experienced budget experts scratched their heads.
Memorandum of suspending federal funds is vague on its wording. In the federal assistance plan, non -profit organizations, and Americans who have been assisted by the government, causing confusion. Federal judge joined the whipping on Tuesday Temporary blocking frozen When she considers the argument between the US government and the plaintiff.
“If this is based on the execution command of (diversity, fairness, and inclusive), why does the government issue so extensive, unclear and chaotic instructions?” Policy analysts of liberal Cato Institute focusing on economic and fiscal policy issues Tad Dehaven told CBS MoneyWatch.
“I don’t know it much. I don’t think even people with power are not people who really understand it.” Wendy Edelberg, the director of the Hamilton project of Brookings, added that liberalism said that liberalism Brookings, a public policy research team.
Which plans are not affected by the freezing of funds?
The memo of the US Management and Budget Office (OMB) shows that social security and medical insurance plans will be exempted from the suspension of federal funds. Other guidelines released on Tuesday further pointed out: “Any plans that provide direct interests to Americans are clearly excluded from pause.”
The renewal guide said: “In addition to the social security and medical insurance that has been excluded in the guide, compulsory plans such as Medicaid and Snap will continue.”
The memorandum added that small enterprises, farmers, Perk donations, Perk gifts, lease assistance and other similar planned funds were also exempted from small enterprises, farmers, Perk, Perlisa, lease assistance and other similar plans.
However, even if the order is still narrower, it may still have serious financial impact on millions of Americans who have received federal assistance.
“If it is resolved quickly, the general economic impact in the first quarter will be moderate, but this is important for those who are expected to pay.” The difference between expelction or burden-economic figures will not fully reflect how individuals will feel this. “
This is a knowledge about who may be affected by the proposed stopping of the federal funds.
Will I get a snapshot?
According to management and budget memo, frozen is not suitable for all federal financial assistance. The agency stated that the welfare (SNAP) benefits of supplementary nutritional assistance programs (SNAP) were excluded, and they were excluded and pointed out that “… Any plan to provide direct benefits to Americans is clearly excluded from being suspended and exempt from this exempt from this. Examination process “”
Memorandum records: “In addition to the social security and medical insurance that has been excluded in the guidance, compulsory plans such as medical subsidies and SNAP will continue.”
SNAP provides about 41 million low -income Americans.
However, although the plan seems to be free of freezing, “you will really worry about whether the federal government will make a good attitude towards these commitments in the short term,” Edelberg said. “This uncertainty is not good for the economy.”
Is the food of the elderly affected?
The Nutritional Plan of the United States Older Act is a federal initiative that supports community -based high -level nutritional plans, such as meals on the wheels, which may be affected by the proposed funds.
If the order includes the “American Elderly Law”, it will “stop services for the elderly who have no other for disadvantaged groups who have no other purchase or preparation for meals.” Should they enjoy meals today. “
Is there risks in housing assistance?
The OMB memo supplements that rental aids and other similar plans will not be suspended. Nevertheless, the National Low -In -Housing Alliance (NLIHC) still expressed the frozen cover of the housing and urban development plan.
Renee Willis, an interim president and CEO of NLIHC statementEssence “The longer the frozen duration, the low-income families who get the federal lease assistance may face the risk of expelction. In the worst case, the homeless and home-owned asylum may be forced to close its door, and Non -profit organizations may have to lay off staff. “
Is student loan affected?
According to the Ministry of Education, federal funds are not suitable for student loans and Pell gifts. Doe spokesman Madi Biedermann said in a statement to CBS Moneywatch: “The funds that are only applicable to the free donation of the Ministry of Education” pause.
Nevertheless, advocates who have government loans say they are worried about the effects of freezing.
AISSACANCHOLABAñEZ, Director of Policy of the Protection Center of the Student Borrower, told CBS Moneywatch that he added: “CBS MoneyWatch told CBS MoneyWatch that” all families with frozen federal fiscal aid in the federal folds are very harmful. “What programs and procedures that are applicable to frozen,”
At the same time, many student borrowers rely on various government assistance to pay for tuition fees.
“There are other types of federal work -free funds directly awarded the university, and some minimum -income students’ supplementary education opportunities. People do rely on federal economic assistance. You may see that your family has to give up her and say,” Graduated or figured it out. How will they make up for this gap. ”
The OMB memo also pointed out that HEAD Start is a kindergarten plan that provides services for nearly 800,000 low -income children to receive the Federal Sanitation Fund and is not affected by pause.
However, the National Association (NHSA) stated that the OMB memo has “caused panic among those who cannot reduce any funds at present.”
“Although we know that this is a continuous development story, this interruption will slow down the ability of the start -up agency, that is, the payment supports hundreds of thousands of employees, contractors and small enterprises in the Head Start Operations in each corner of the country, the payment supports Ability, Yasmina Vinci, executive director of NHSA, said in a statement. “
Although the latest guidelines were released on Tuesday, plans, including medical subsidies, were excluded from the suspension of funding on Tuesday and the state medical subsidy plan Say they are locked The Ministry of Health and the Public Service Department is used to track and raise funds.
Pay management service Web portal shows a message: “PMS is taking other measures to handle payment due to the execution order that does not allow funding for potentially non -allowable appropriations. The review of the applicable plan and payment will cause delay and/or refusal to pay.”
A spokesman said that the National Medical Subsidy Directors Association is seeking to clarify the Bai Gala interruption.
The report made contributions.
