I was very closely watching the saga of OMB’s disastrous effort to freeze funding for a vast number of federal programs, and wrote about why it was actually revoked at New York.
This week the Trump administration set off chaos nationwide when it temporarily “paused” all federal grants and loans pending a review of which programs comply with Donald Trump’s policy edicts. The order came down in an unexpected memo issued by the Office of Management and Budget on Monday.
Now OMB has rescinded the memo without comment just as suddenly, less than a day after its implementation was halted by a federal judge. Adding to the pervasive confusion, White House Press Secretary Karoline Leavitt immediately insisted on Wednesday that the funding freeze was still on because Trump’s executive orders on DEI and other prohibited policies remained in place. But there’s no way this actually gets implemented without someone, somewhere, identifying exactly what’s being frozen. So for the moment, it’s safe to say the funding freeze is off.
Why did Team Trump back off this particular initiative so quickly? It’s easy to say the administration was responding to D.C. district judge Loren AliKhan’s injunction halting the freeze. But then again, the administration (and particularly OMB director nominee Russell Vought) has been spoiling for a court fight over the constitutionality of the Impoundment Control Act that the proposed freeze so obviously violated. Surely something else was wrong with the freeze, aside from the incredible degree of chaos associated with its rollout, requiring multiple clarifications of which agencies and programs it affected (which may have been a feature rather than a bug to the initiative’s government-hating designers). According to the New York Times, the original OMB memo, despite its unprecedented nature and sweeping scope, wasn’t even vetted by senior White House officials like alleged policy overlord Stephen Miller.
Democrats have been quick to claim that they helped generate a public backlash to the funding freeze that forced the administration to reverse direction, as Punchbowl News explained even before the OMB memo was rescinded:
“A Monday night memo from the Office of Management and Budget ordering a freeze in federal grant and loan programs sent congressional Republicans scrambling and helped Democrats rally behind a clear anti-Trump message. Senate Minority Leader Chuck Schumer blasted Trump as ‘lawless, destructive, cruel.’
“D.C. senator Patty Murray, the top Democrat on the Appropriations Committee, warned that thousands of federal programs could be impacted, including veterans, law enforcement and firefighters, suicide hotlines, military aid to foreign allies, and more …
“During a Senate Democratic Caucus lunch on Tuesday, Schumer urged his colleagues to make the freeze “relatable” to their constituents back home, a clear play for the messaging upper hand. Schumer also plans on doing several local TV interviews today.”
In other words, the funding freeze looks like a clear misstep for an administration and a Republican Party that were walking very tall after the 47th president’s first week in office, giving Democrats a rare perceived “win.” More broadly, it suggests that once the real-life implications of Trump’s agenda (including his assaults on federal spending and the “deep state”) are understood, his public support is going to drop like Wile E. Coyote with an anvil in his paws. If that doesn’t bother Trump or his disruptive sidekick, Elon Musk, it could bother some of the GOP members of Congress expected to implement the legislative elements of the MAGA to-do list for 2025.
It’s far too early, however, to imagine that the chaos machine humming along at 1600 Pennsylvania Avenue will fall silent even for a moment. OMB could very well issue a new funding-freeze memo the minute the injunction stopping the original one expires next week. If that doesn’t happen, there could be new presidential executive orders (like the ones that suspended certain foreign-aid programs and energy subsidies) and, eventually, congressional legislation. Democrats and Trump-skeptical Republicans will need to stay on their toes to keep up with this administration’s schemes and its willingness to shatter norms.
It’s true, nonetheless, that the electorate that lifted Trump to the White House for the second time almost surely wasn’t voting to sharply cut, if not terminate, the host of popular federal programs that appeared to be under the gun when OMB issued its funding freeze memo. Sooner or later the malice and the fiscal math that led to this and other efforts to destroy big areas of domestic governance will become hard to deny and impossible to rescind.
Norm?
Norman?
Norman Rogers?
*Warning – Possible Troll Alert*
I think more people need to get off their lazy behinds and really look for a job. The Toledo Blade (Ohio) on Sundays has over 4 full pages of jobs, with more than 1 entirely in the medical field. Of course these jobs take an education and some hard work to get which many people don’t want to do. Why do so many people think they should get paid a great wage for doing nothing? Socialism didn’t work in the Soviet Union and it won’t work here. Our country was based on you get what you work for, not making others give you something you don’t deserve. I have gotten my first raise in 10 years so something must be starting to get fixed from 8 years of depression in jobs.
This just out, from Citizens for Tax Justice, an outstanding nonprofit group that has been monitoring the tax code for progressivity for decades now:
DO FAT CATS PAY LOWER TAX RATES THAN WORKERS?
A May 8 analysis by the Institute on Taxation and Economic Policy, released today by Citizens for Tax Justice, shows that the federal tax code has
become so skewed in favor of investors over workers that personal taxes on earnings are now two-and-a-half times greater than personal taxes on
investment income.
The analysis shows that total federal personal taxes paid on wages now average 23.4 percent, while federal personal taxes on investment income now average only 9.6 percent.
The press release is available on CTJ’s website at
http://www.ctj.org/pdf/earnpr.pdf .
The full ITEP analysis can be found at http://www.itepnet.org/earnan.pdf .
(end of CTJ communication)
Edwards in his two Americas speech worked in this theme about this Administration favoring wealth over work in its tax and other economic policies. Most Americans, based on polling results, already know that this Administration favors the wealthy in its tax policies. And that seems not (yet, anyway) to have coincided with the sort of hue and cry one would have hoped for in light of such an outrageous reality.
I liked Edwards’ frame on this. It is a relatively easy to explain values-based statement which seems to resonate better with a broader portion of the public than others I’ve seen used to get at the same point. It is harder to attack with the class warfare line and lends itself better to putting a human face on this issue.
Frank, it is possible to determine the approximate “value” of the “jobs” being created if you take a look at the full report put out by the Bureau of Labor Statistics at http://www.bls.gov/news.release/empsit.tl4.htm.
When you look at the numbers being offered, what you will find is that of those 288K net new “jobs”, 60.1K are in Temporary Help Services and Business Support Services (shorter version: temp jobs) and another 29.8K are in Services to Building and Dwellings (groundskeepers in other words). You will find another 36K in Accomodations and Food Services (about 80% in Food Services and Drinking Places) and another 16.8K in Ambulatory Health Care Services (home health aides in other words). So, just add up these numbers (142.7K total) to see that about 50% of the new positions are in immediately identifiable minimum wage jobs. I haven’t even teased out the other minimum wage jobs contained in the list yet but they can be identified (what percentage of Nursng and Residential Care Facilities positions aren’t minimum wage in your estimation, for example?).
I’ll let you draw your own conclusion about how sustainable Dubya’s growth projections are. Take a look at the BLS report for more detail.
ALERT: John Zogby has placed an article on his website in which he predicts, based on current polling numbers and history, that John Kerry will win the election. His arguments are quite similar to those espoused on this website…
Where are all these new jobs? I am highly educated and skilled, and I’ve been out of work for a year. It’s been ages since I’ve even had an interview.
Is there any way to tell if the new jobs are actually lower paying sector jobs? I smell a rat.
The problem with the Repub/CNBC line about how the economy is improving is that it is based on aggregate statistics. As the public rightly perceives, things aren’t getting be4tter for ordinary people. The tax cuts, while nice sounding in the aggregate, went mostly to 1-2% of the population. New jobs, ok, but no one is saying how much they pay. If they are at Wal-Mart, it isn’t good enough. Corporate profits may be up, but they aren’t being spread around. The public understands that gasoline is going up, interest rates are going up, inflation is going up, wages aren’t going up, and good jobs are still disappearing. As someone upthread said, Bush’s economic policies are succeeding, but the result is bad for 98% of the population.
In my field, information technology, over 900K jobs have been lost since 2001, and since January, 15K have been added.
This is supposed to cheer people up?
Democrats need to understand that, on the economy, Bush has not “failed.” He’s succeeded in what he is trying to do. The only problem is that what he is trying to do, is only really good for about 1% of the population. Bush is trying to shape an economy in which there are tremendous productivity gains, but no wage gains, and guess what we’ve got? Duh!
Perhaps voteres are waking up to the fact that we have embraced an economic policy with the moral equivalence of throwing a huge drunken party complete with booze, dancing girls, and a rented ballroom, then charging it all to our children. . .
Well, probably not.
The most important changes for an optimistic economy are wage growth, control over health care and insurance costs, and secure retirements. Allowing these to be dictated by employers like Bush seems content on doing will only drive more pessimism and insecurity and doubt. The party that wins public support for the economy must raise the federal minimum wage, especially for full time workers, and keep it indexed to price inflation. Sen. Kennedy made this important proposal that should be tacked onto any bill that Republicans use to eviscerate the middle class! Middle class and working class workers can’t pay their bills and mortgages and health care costs, let alone save for retirement of Bush’s ludicrous Health Savings Accounts. Bush is incredibly out of touch and REFUSES to see the error of his ways. Why do Republicans seem to only care about GDP growth, not stagnant wages? about newly unemployed numbers, not those out of work for years and years? Kerry is the only one who understands and aims to help average Americans.
No amount of priveledge can take away the fact that Kerry has the best ideas! And no amount of cowboy antics and acting chumy with voters can take away the fact that Bush’s policies have emasculated most workers who don’t earn, say, $100,000 a year and have only helped the superrich!
The jobs numbers aren’t good according to BushCo’s econ team. An average of 306,00 jobs/month, thanks to tax cuts. At least they outpace population growth again though.
It’ll go away eventually. It lags, of course. I don’t think there’s any doubt at this point that the economy, and particularly the job situation, will be considerably better by this time next year. I used to be afraid that it would improve quickly enough to help Bush, but I’m nearly positive that there’s not enough time at this point. Thank god.
I suspect that SSJPabs is correct about a time lag. Especially given the competing news this week.
I think the key indicator of the economy for most people is “when do I expect my next raise, and how big will it be?” And right now, I now a _lot_ of people for whom that indicator is very negative. Anecdotally, nearly everyone I talk to (including, unfortunately, my own employees) is clear that there will be no raises this year, and unless things change radically, next years’ are likely to be small, too.
This contrasts very, very clearly with memories of the second half of the nineties, where raises (and even bonuses, remember those?) were regular and decently-sized, if not better.
From my reading, no matter what the numbers, the one major thing this recovery has not produced, and doesn’t seem likely to produce, is any real wage growth any time soon.
So for most people, the recovery is not real on a personal level. Everyone is happy that there isn’t any inflation (unless you’re trying to buy a first house), but there certainly isn’t any sense of hope that things are getting any better.
Well I suppose it took a lot of time for the lack of jobs to really impact the public perception on economics, it might take a while for that to be too.
I’m too close to these things, too informed. I honestly admit that I have little in common with the average public in reactions to these numbers.