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Now OMB has rescinded the memo without comment just as suddenly, less than a day after its implementation was halted by a federal judge.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freeze that forced the administration to reverse direction, as Punchbowl News explained even before the OMB memo was rescinded: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.
Apparently, under Obama’s proposal, you can also discriminate against gay people with U.S. taxpayer money, as long as you’re in a state and municipality that affords gays no legal protections:
“And while Bush supports allowing all religious groups to make any employment decisions based on faith, Obama proposes allowing religious institutions to hire and fire based on religion only in the non-taxpayer-funded portions of their activities — consistent with current federal, state, and local laws. ”That makes perfect sense,” he said.
Where there are state or local laws prohibiting hiring choices based on sexual orientation in the federally funded portion of the programs, he said he would support those being applied.”
If there are no such state or local laws, there are no similar strings of the federal money. So in Nebraska, you can take my federal tax dollars, and tell any gay applicants willing to work for those tax dollars to go away and — literally — go to hell.
I think the confusion relates to the distinction I made in the post between non-discrimination in publicly funded projects, and non-discrimination elsewhere. Looks to me like Obama will insist on the former, but not the latter. But presumably evidence of the latter would create a red flag requiring exceptional scrutiny of the former.
One way to resolve this (as indeed, has long been the case with Catholic hospitals and charities) is to require recipients of public money to set up separate organizations for the publicly-funded projects, to ensure that money doesn’t “leak” over to activities not covered by non-discrimination rules. But I gather this is considered a burden for many very small FBOs.
Thanks for the comment.
Ed Kilgore
It’s interesting that although Obama claims he wouldn’t allow employment discrimination, a member of his campaign credible enough to be quoted by the AP says that he DOES plan to allow it. I wonder if the latter is a previously agreed-upon fallback position, and Obama’s cover (as usual) will be the need to “compromise for the greater good.” The Salvation Army is on record as wanting an exemption from local anti-discrimination law so that it won’t have to hire any homosexuals. No need even to go into the Boy Scouts situation. The main (perhaps the only) effect of not requiring grantees to pledge employment non-discrimination would probably be on gay people. They’re the only minority anybody claims to have a RELIGIOUS objection to hiring. Even Christian evangelicals make common cause now with Jews.
This entire endorsement of Bush’s policy of chipping away at the separation of Church and State is so disappointing to me that I notice with great interest Taegan Goddard’s site (which takes note of everything else political that gets a headline anywhere) hasn’t touched it with a ten foot pole. Unless he plans on writing a long piece on it, he’s just ignoring it. Speaking of Taegan Goddard’s site, you’re allowed to call Barney Frank a “fudge fan” there without getting deleted, but when I posted something about the faith-based policy under a non-germane thread, it was gone instantly.