NH, Maine governors decry Trump federal funding freeze, NH delegation says action could be ‘disastrous’; federal judge issues temporary stay

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White House Press Secretary addresses the President’s freeze on federal grants and loans. YouTube

MANCHESTER, NH – Gov. Kelly Ayotte and Maine Gov. Janet Mills may be polar opposites politically, but the neighboring governors both released brief statements Tuesday afternoon opposing the Trump administration freeze on federal grants and loans.

The announcement from the White House, made late Monday night by the Office of Management and Budget, has caused panic and confusion across the country, as agencies and organizations that get federal funding tried to determine what it meant for them. According to the memo, the federal government spent $3 trillion on federal assistance programs last year.

Ayotte

During a press briefing, White House Press Secretary Karoline Leavitt responded to reporters who asked what the funding freeze means to the American public.

“It means no more funding for illegal DEI programs. It means no more funding for the green new scam that has cost American taxpayers, tens of billions of dollars. It means no more funding for transgenderism and wokeness across our federal bureaucracy and agencies no more funding for green New Deal social engineering policies. Again, people who are receiving individual assistance, you will continue to receive that. President Trump is looking out for you by issuing this pause because he is being a good steward of your taxpayer dollars,” Leavitt said.

The order was to go into effect at 5 p.m. Tuesday, but a federal judge right before that hour issued an administrative stay on it, which halts it until Monday.

Ayotte, earlier in the afternoon, issued a statement that said:

 “While I support a commonsense review of federal spending to ensure it is in the taxpayers’ best interest, we cannot allow interruptions to critical services for those who depend on them. My office has been in communication with the White House to ensure that our citizens are not negatively impacted by any unintended impacts and that critical services continue without interruption.

Ayotte, a Republican, did not mention Trump in her memo, though his press secretary, Karoline Leavitt, said in an afternoon news conference attributed it to Trump, saying, “He’s just trying to ensure that the tax money going out the door in this very bankrupt city actually aligns with the will and the priorities of the American people.”

The legality of the order is in question, since Congress sets and determines spending.

In neighboring Maine Mills, a Democrat, said,:

“I am deeply concerned about the Trump Administration's directive to halt nearly all Federal loans, grants, and other financial assistance. Like many of my fellow governors, I have serious questions about the extent and scope of his decision; the impact it will have on Maine people and businesses, especially the most vulnerable in our state; and his legal authority to issue such an edict.
“My Administration is evaluating the effects of this order, including its impacts, but it is already clear to me that it is causing entirely needless chaos and confusion across Maine and the nation that will turn into real and serious harm if it continues. This order, like the President's threat of tariffs, does not do anything to bring down the price of eggs, bread, heat, housing, or healthcare, like he campaigned on -- if anything, this action will drive the cost of living up even further."

The memo, released late Monday night by the White House Office of Management and Budget, calls for a spending freeze on federal assistance by 5 p.m. Tuesday. The White House said the freeze will not have an impact on payments made directly to individuals, including Social Security, Medicare and SNAP (previously known as food stamps), but the freeze could affect everything from aid to nonprofits, universities, small business loans and state and local government grants for housing, infrastructure, development, and more.

“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” the memo, written by Matthew Vaeth, acting director of the Office of Management and Budget, said.

It called for every agency to “complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders.” 

Federal grants fund agencies like NH Housing, the Small Business Administration, pays for school lunch and other public school programs, community development grants, infrastructure improvements for states like wastewater treatment plants, and hundreds of other programs and organizations.

The “review” may also affect grants that have been awarded but not spent.

Tuesday, according to multiple reports, agencies and organizations that receive federal funding were scrambling to figure out what programs the memo referred to, since it didn’t contain any specifics.

By late Tuesday, a number of lawsuits had been filed to halt the order, including one by Democratic governors. Mills didn’t indicate whether she was a part of that lawsuit.

Richard Ober, president and CEO of the New Hampshire Charitable Foundation, said the fall-out of the funding freeze would target the most vulnerable in New Hampshire.

“This federal funding freeze would have an immediate and devastating impact on thousands of people across every community in New Hampshire. The state relies on nonprofit organizations to deploy federal funds through local programs that do everything from feeding hungry kids to providing lifesaving health care to making sure our veterans have homes,” said Ober. “This kind of action only serves to exacerbate existing crises and harm the most vulnerable among us.”

NH Senator Pat Long, D-Manchester, said he had been fielding calls from constituents and was still trying to sort out what it all means himself.

“What they’re looking at, from my understanding, is any grants or loans going to DEI proponents – diversity, equity and inclusion – or transgender stuff. We may get a better understanding tomorrow,” Long said.

He made some calls and said he determined that, for the time being, this would not have any effect on operation of Meals on Wheels, TANIF or housing funds.

“Now, when it comes to education, that’s still my concern because we have equity officers in Manchester. That’s still not clear to me,” Long said.  

Nashua Mayor Jim Donchess said he has been in touch with U.S. Senator Jeanne Shaheen’s office, but there is little clarity around what the federal funding freeze will mean to his city.

“We don’t know what it applies to yet, but we’re concerned it could apply to veterans, food stamps, and many other benefits that individual Nashuans receive,” Donchess said. “As far as city government goes, it could affect Title 1 funding which goes to five of our elementary schools, there’s the transit system, which operates on combined federal/state/city funds, and if that stopped it would affect a lot of people,” Donchess said.

“We’re concerned about [Community Development Block Grant] CDBG money, and the health department gets federal money through the state of New Hampshire – we also received as result of Senator Shaheen $3 million for a new park next to city library – that would be potentially be lost; we don’t know what it applies to. Hopefully we’ll know more soon.”

U.S. Senator Jeanne Shaheen (D-NH), a senior member of the U.S. Senate Appropriations Committee, was critical of the Trump administration’s “far-reaching decision” to freeze federal grants and loans. 

“The administration’s staggering and unprecedented decision to stop programs and services that families and small businesses rely on is a direct affront to Granite Staters and Americans across the country. By taking this extreme action, programs to help families afford food and health care, ensure affordable and reliable energy, invest in critical infrastructure, grow our small businesses, keep our veterans housed, support law enforcement, bolster our national defense and so much more will immediately stop operations,” Shaheen said. 

“The Trump administration has provided little guidance to the federal agencies tasked with carrying out this unlawful freeze, causing confusion and panic. My office has heard from countless Granite Staters who are concerned about what this action will mean for them, including counties and towns that are waiting on promised funding for work that has already been completed. Let’s be clear: Congress controls the purse strings, not the Executive Branch, and Congress must fight back against this unconstitutional action that jeopardizes the health and wellbeing of families and communities.” 

The Trump administration’s Office of Management and Budget (OMB) announced a sweeping executive order pausing almost all forms of federal assistance to states, nonprofits, non-governmental organizations and more. The full list that agencies are directed to review encompasses over 2,600 assistance programs, including Supplemental Nutrition Assistance (SNAP), Women, Infants and Children (WIC), community health centers, the Community Development Block Grant (CDBG), transportation and highway funding, energy assistance programs, water infrastructure funding, State Opioid Targeted Response grants, Gi Bill, veteran compensation for service connected disabilities, Section 8 vouchers, school breakfast and lunch, Title I education grants, Temporary Assistance for Needy Families (TANF) and Head Start. 

Congresswoman Maggie Goodlander, D-NH, said the effects of a federal funding freeze “could be disastrous” for New Hampshire. 

“Communities across New Hampshire rely on federal funding — from our police departments to our fire departments and from our child care centers to our small businesses. Our team is working with partners across our state and with our partners in Congress to fight for the funding New Hampshire deserves.”

Congressman Chris Pappas said the Trump Administration order “will have a devastating impact on communities across New Hampshire,” raising costs for working people and institutions.

“And it will make it harder for families to access the basic services they rely on,” Pappas said. “A wholesale freeze on these bipartisan programs will hurt local fire and police departments, small business loans, addiction treatment, domestic violence prevention, Meals on Wheels, housing support, and services for veterans. I am remaining in close contact with local service providers across the state, and my office will provide any assistance we can as we learn more. This action by the Trump Administration is incredibly reckless and will have disastrous impacts on our friends, family, and neighbors throughout the Granite State. I urge the President to reverse this order and focus on helping the people of New Hampshire, not cause chaos and uncertainty by hurting the people who need help the most.”

Carol Robidoux and Dan Splaine contributed to this report.


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