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Now OMB has rescinded the memo without comment just as suddenly, less than a day after its implementation was halted by a federal judge.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freeze that forced the administration to reverse direction, as Punchbowl News explained even before the OMB memo was rescinded: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.
“Unconstrained, the public plan could drive private insurers out of business, setting off a political backlash not just from the industry but from much of the public.” Since when is everything that follows the “but” a given fact?Any bill that does not include a public option plan is likely to do more harm than good, in that it would perpetuate a variant of the current failed system. Churchill once noted that ”You can always count on Americans to do the right thing – after they’ve tried everything else”. We have tried everything else on health care. Now it’s time to do the right thing. Over 20 other first-world countries having heath care plans with universal coverage and/or single-payer systems have equal or better overall health care statistics at costs of 8-12% of GNP compared to our 16-17% of GNP. Pick one of the these model systems you like the best (Germany, Japan, Canada, France, Norway, Sweden, Denmark, Netherlands, England, Switzerland, Austria, Australia, New Zealand, whatever) and increase the costs by 20% to cover what you don’t like about that particular system and you’ve still got a much better system than ours at 20-40% less cost. If you don’t like any of them, quite frankly you’re a deluded ideologue that no amount of real-world data will change. What is risky is to re-arrange the deck chairs as the means to re-float our already-sunk non-universal private-plan only system, rather than to change to a variant of one of many demonstrably floating systems that all incorporate universal coverage and public-plan, often single-payer, systems. A public system does not necessarily mean the end of private systems. Many countries with successful, much lower cost public plans cover basic medical needs for everyone. Additional coverage for other, more elective, medical procedures are covered by private plans where the total costs are still less than ours. As one example, Google Germany.