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*** UPDATE 1 *** Looking for more info…
Within minutes of the White House freezing billions in federal grants and loans, a federal judge temporarily blocked the funding pause from taking effect — issuing a "brief administrative stay" — until Monday at 5PM.
— Katherine Faulders (@KFaulders) January 28, 2025
…Adding… The judge’s order is here.
…Adding… AP…
A federal judge has temporarily blocked a Trump administration freeze on federal grants and loans that could total trillions of dollars.
U.S. District Judge Loren L. AliKhan blocked the action Tuesday afternoon, minutes before it was set to go into effect. The administrative stay pauses the freeze until Monday.
The White House had planned to start the pause as they begin an across-the-board ideological review of federal spending.
*** UPDATE 2 *** The governor just said the state was able to access the Medicaid system as of about an hour ago (around 3 o’clock).
*** UPDATE 3 *** Pritzker went off on the president today…
The United States Constitution clearly states that Congress has the power of the purse and sets laws to obligate federal funding for all 50 states. What Donald Trump tried to do in the last 24 hours is illegal.
Let’s be clear, this is a demonstration of cruelty against people who depend on us, working families who rely on federal assistance to pay their rent, people who need help paying their utility bills, parents who need critical programs like Head Start for quality, affordable child care, and 3.5 million Illinoisans who get their health insurance through Medicaid. Despite what the White House press secretary said at the podium earlier, I believe it is my duty to report to you the truth of what actually happened today in Illinois.
Donald Trump’s administration is lying to you. The White House’s attempt to walk back what they did today does not match what we saw on the ground.
They assured us that Medicaid would not be affected. That was a lie. Our state agencies were unable to access the Medicaid system until an hour ago, preventing payments for services. And this has been reported from states across the nation.
When we reached out to federal agencies, they informed us that they have been directed not to discuss any guidance with states. They have canceled previously scheduled meetings for this week.
The White House assured us that Head Start would not be affected. That was a lie. Providers across the state experienced outages and some were unable to make their payroll. They assured us that they were doing nothing to take away individual assistance from the most vulnerable people in our state, but they refused to say that they would restore LIHEAP, the low income housing, Energy Assistance Program, payments to support the unemployment system and meals on wheels. These are programs that hundreds of 1000s of illinoisians depend on, children, seniors, veterans, working parents.
Let’s just be clear about what happened over the last 24 hours. At 7:42pm last night, we saw a memo from the White House saying that they were pausing federal funding across the board. This morning, along with all 50 states across the country, we discovered that our ability to access critical federal funding had been cut off, and now the administration would like us to believe that these were just coincidental website outages.
Donald Trump and his administration have not earned the benefit of the doubt. They are either lying to us or they are critically incompetent. This is what happens when you staff the federal government full of project 2025 contributors that don’t have any experience governing and don’t think that the laws apply to them. The consequences of their actions are not hypothetical. They are not numbers on a spreadsheet. These are real people, ordinary Americans struggle, struggling to afford groceries, rent, and health care.
Please pardon all transcription errors.
…Adding… More from Pritzker…
I was very happy to hear as I entered this room today that an administrative stay has been granted. Let me assure you, the state of Illinois will fight this unlawful order with everything we have. We’re working with the Attorney General, who has moved forward with other states to continue pursuing legal action to protect the people of Illinois. Last November, on the day after the election, I made a promise to the people of Illinois when it comes to threats to our freedom, health or security. If you come for my people, you come through me.
…Adding… More Pritzker…
You think it’s an accident that the memo came out last night and then this morning, our state agencies, like Medicaid could not access those systems? It’s not an accident. The intention here is to disrupt. The intention here is to make cuts, and it will affect people all across our state.
…Adding… Pritzker…
When our agencies reached out to the federal agencies, we literally were informed that they are not to speak with us.
-30-
*** UPDATE 4 *** The attorney general’s lawsuit is here.
* Background is here if you need it. Some of what I’m using in this post is in the other post, but I’m trying to refocus and make this more readable.
The federal government is now saying the Medicaid portal will be back up soonish. I suppose we’ll just have to wait and see…
Update from the White House on the Medicaid portal shutdown - spokesperson says payments are still being processed and should be back up and running: https://t.co/CGEBLt9xpl
— Paris Schutz (@paschutz) January 28, 2025
* However…
A notice at the top of the federal Medicaid Payment Management System website on Tuesday read: “Due to Executive Orders regarding potentially unallowable grant payments, PMS is taking additional measures to process payments. Reviews of applicable programs and payments will result in delays and/or rejections of payments.”
So, we don’t really know what’s going on.
* But, as I noted on the earlier post, even if the system goes back into operation, we still don’t know the fate of trillions of federal funding dollars that are being held up. From the Sun-Times…
Trump’s administration announced the pause in federal grants, loans and other financial assistance as they embarked on a sweeping review of spending — a measure aimed at “ending ‘wokeness’ and the weaponization of government,” according to a memo from Matthew Vaeth, acting director of the Office of Management and Budget.
The funding freeze could affect trillions of dollars and cause widespread disruption in health care research, education programs and other initiatives. Grants that have been awarded but not spent are also halted, according to the Associated Press. […]
In the federal memo, Vaeth wrote: “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.”
Vaeth said each agency must complete a comprehensive analysis of all federal financial assistance programs.
“In the interim, to the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders.”
The full memo is here, and the spreadsheet with impacted programs is here.
* Attorney General Kwame Raoul joined several other AGs around the country to file a lawsuit against the budgetary action. From his remarks today…
This unconstitutional pause in funding will have a devastating impact on the public safety, prosperity and quality of life of all.
Democrats and Republicans alike will be negatively impacted by this pause in funding.
It impacts our ability to go after offenders who prey on a our children, because this impacts our Internet Crimes Against Children Task Force. Our task force has enabled us to capture a record number of child predators. That is compromised.
It impacts… funding that allows our law enforcement partners to fight crime and impacts those who rely on Medicaid for life-saving health care.
It impacts our capacity to provide for veterans who served our country. Head Start and child care programs. The support for critical research at our universities. And support for farmers who grow our food. And of course, critical investment in infrastructure needed for our roads and bridges and keeping our working families working.
* More context from the Tribune…
In the fiscal year ending in 2024, Illinois agencies received nearly $30 billion in direct federal aid, according to a report from the state Commission on Government Forecasting and Accountability. More than $19 billion in federal funding went to the Department of Healthcare and Family Services in Medicaid-related payments, according to CGFA.
Billions went to grants in other parts of state government, including some $2.3 billion to the Department of Transportation, $401 million to the agency tasked with economic opportunity and $314 million to the Environmental Protection Agency, the same report said.
* More context from NBC…
Challengers to Trump’s actions to withhold funding would likely cite the Impoundment Control Act, a law passed in 1974 to regulate the president’s control over the budget. This followed efforts by then-President Richard Nixon to withhold spending on programs he did not support, like Trump has indicated his intention to do.
Under that law, the president can temporarily withhold funds — but must notify Congress first, and the decision cannot be based on policy grounds. The president can also ask Congress to rescind spending decisions, which can also be grounds for a pause in spending.
Their “pause” decision is obviously based on policy grounds…
The spreadsheet includes specific questions for over 2,600 specific accounts within agencies across the government, large and small — every Cabinet department and independent agencies ranging from the Federal Communications Commission to the Institute of Museum and Library Services to the U.S. International Development Finance Corporation.
The questions, intended to ensure that federal programs are in compliance with Trump’s executive orders and policy goals, include the following:
• “Does this program provide Federal funding to non-governmental organizations supporting or providing services, either directly or indirectly, to removable or illegal aliens?”
• “Is this program a foreign assistance program, or provide funding or support activities overseas?”
• “Does this program provide funding that is implicated by the revocation and rescission of the U.S. International Climate Finance Plan?”
• “Does this program include activities that impose an undue burden on the identification, development, or use of domestic energy resources (including through funding under the Inflation Reducing (sp) Act of 2022; and the Infrastructure Investment and Jobs Act)?”
• “Does this program provide funding that is implicated by the directive to end discriminatory programs, including illegal DEI and ‘diversity, equity, inclusion, and accessibility’ (DEIA) mandates, policies, programs, preferences, and activities, under whatever name they appear, or other directives in the same EO, including those related to ‘environmental justice’ programs or ‘equity-related’ grants?”
• “Does this program promote gender ideology?”
• “Does this program promote or support in any way abortion or other related activities identified in the Hyde Amendment?”
• “If not covered in the preceding columns, does this program support any activities that must not be supported based on executive orders issued on or after January 20, 2025 (including executive orders released following the dissemination of this spreadsheet)?”
The Trump folks say the Impoundment Control Act is unconstitutional. We’ll see.
* The White House appears taken aback…
The scramble began late Monday, after the White House budget office circulated a list of spending programs under scrutiny that seemed to implicate virtually every function of the federal government. The funds it identified for review included a vast array of initiatives that help the poor, potentially arresting funds that provide rental vouchers, nutrition benefits and college aid to low-income Americans.
The administration also pointed to federal programs that inspect meat, poultry and eggs for potential foodborne illnesses, and payments to farmers whose crops are ravaged by natural disasters. And they included a sizable roster of initiatives to protect public health, seemingly aiming to freeze money meant to fight the spread of AIDS, research cancer causes and detection, and prepare for bioterrorism attacks. […]
The Trump administration also said it had set up a process for agencies to work with the White House on evaluating their funding, and already had approved “many programs to continue” operating normally. Otherwise, OMB said some spending could come back online in as quickly as a day, as the White House looked to deflect criticism that it had taken radical action.
Stay tuned.
posted by Rich Miller
Tuesday, Jan 28, 25 @ 2:45 pm
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well, at least the price of eggs is coming…wait, what?
Comment by coinflip Tuesday, Jan 28, 25 @ 2:48 pm
In my totally unrealistic fantasy?…Americans recognize their collective economic power and resist… by refusing to purchase their products in a nationwide strike…for one week.
Comment by Dotnonymous x Tuesday, Jan 28, 25 @ 2:48 pm
Keep your dirty government hands off my Medicare.
Comment by Three Dimensional Checkers Tuesday, Jan 28, 25 @ 2:52 pm
“well, at least the price of eggs is coming…wait, what?”
Now there is “hateflation,” inflation plus racism and cruelty, with attacks on DEI, trans, etc.
Comment by Grandson of Man Tuesday, Jan 28, 25 @ 2:55 pm
My Mom taught me “woke gender ideology” when she told me, a male, to do the dishes or my own laundry.
Comment by Jerry Tuesday, Jan 28, 25 @ 3:01 pm
Gee you don’t suppose all those farm subsidy crop guarantee programs got cut do you? Sauce for the goose etc
Comment by DuPage Saint Tuesday, Jan 28, 25 @ 3:11 pm
If one of the criteria questions is, “does this program support gender ideologies.” then every program should be required to answer “Yes.” Trump’s agenda is clearly driven by gender ideology.
Comment by H-W Tuesday, Jan 28, 25 @ 3:15 pm
The cruelty is the point…..
Comment by btowntruth from forgottonia Tuesday, Jan 28, 25 @ 3:20 pm
You know, I just processed a medicaid application for a customer that has a pregnancy due date in mid February. She was approved
But think of the uncertainty and worry about Medicaid that this brings.
Would you wish this upon your wife or daughter?
Think about having to give birth and being stuck with that bill for the rest of your life. Having to declare bankruptcy. Going through that when it should be a wondrous time to welcome a first born child.
Imagine it…If you can’t or refuse too
Then God have mercy on you
I feel sorry for you that you can’t feel empathy or compassion.
Comment by Honeybear Tuesday, Jan 28, 25 @ 3:23 pm
The irony is this will impact MAGA constituents more than anyone else
Comment by low level Tuesday, Jan 28, 25 @ 3:27 pm
From Project 2025: “Withdraw Medicaid funds for states that require abortion insurance or that discriminate in violation of the Weldon Amendment.” (p. 472)
Of course, Trump disavowed Project 2025; so, it. can’t be that.
Comment by Pot calling kettle Tuesday, Jan 28, 25 @ 3:32 pm
===Imagine it…===
This only works if someone has empathy. That appears to be in short supply these days.
Comment by 47th Ward Tuesday, Jan 28, 25 @ 3:32 pm
There were guardrails in place during Trump’s first term which kept these types of things from occurring. Those are gone. And the scattershot way in which these orders are being rolled out tells me that the unintended consequences will be a big surprise to some. As the saying goes, elections have consequences.
Comment by Pundent Tuesday, Jan 28, 25 @ 3:40 pm
And yet the MAGA faithful will defend this behavior with all they have because their leader demands it. Another sad day for the Republic.
Comment by Fayette County Tuesday, Jan 28, 25 @ 3:42 pm
===The Trump folks say the Impoundment Control Act is unconstitutional. We’ll see.===
Train v. City of New York, 420 U.S. 35 (1975) is another hurdle for the Trump administration if it goes that route.
Comment by Three Dimensional Checkers Tuesday, Jan 28, 25 @ 3:45 pm
I’d also like to point out that the Medicaid portal being down is a choice.
There is nothing that will make me believe that it went down by accident.
This is willfully throwing a wooden shoe into the machinery.
Again, Illinois got a preview of this kind of blackmail. It was horrendous. I remember when state workers had to pay upfront for dental work because Rauner hadn’t paid the bills. So my coworkers dealt with literally years of toothache. This is so much larger than that.
Folks, study up on the condition that prohibits one from feeling empathy or taking accountability. We must understand what we are up against.
Comment by Honeybear Tuesday, Jan 28, 25 @ 3:52 pm
There should be no Medicaid funds for “ED” pills. Speaking of reducing abortions.
Comment by Jerry Tuesday, Jan 28, 25 @ 3:59 pm
=== Gee you don’t suppose all those farm subsidy crop guarantee programs got cut do you? ===
Get Bailey on the horn. He’ll know.
/s
Comment by XonXoff Tuesday, Jan 28, 25 @ 4:24 pm
Abortion rights will be decided state by state. However, any state that does not outlaw abortion will be cut off from federal Medicaid funds.
Each state will remain free pass whatever laws it chooses to pass.
Comment by It's very simple Tuesday, Jan 28, 25 @ 4:29 pm
===However, any state that does not outlaw abortion will be cut off from federal Medicaid funds.===
Says who?
Comment by Rich Miller Tuesday, Jan 28, 25 @ 4:33 pm
-It’s very simple - Each person has the option to give me their wallet. However any person that does not give me their wallet will be shot. You are free to make your choice.
Comment by It's Just a Pill Tuesday, Jan 28, 25 @ 4:36 pm
When will we be able to access the video file from JV’s press conference today?
Comment by Purple girl Tuesday, Jan 28, 25 @ 4:44 pm
==== ===However, any state that does not outlaw abortion will be cut off from federal Medicaid funds.===
Says who?======
I actually thought that was snark. Hope I am right but now starting to think it probably wasn’t. How pathetic.
Comment by Been There Tuesday, Jan 28, 25 @ 4:57 pm
- However, any state that does not outlaw abortion will be cut off from federal Medicaid funds. -
You need to fix your nickname, you misspelled “I’m”.
Comment by Excitable Boy Tuesday, Jan 28, 25 @ 5:02 pm
Using Medicaid funding to leverage laws to ban abortion is part of the Project 2025 playback.
I hope I am wrong about what is intended but I fear I am not.
Time will tell.
Comment by It's very simple Tuesday, Jan 28, 25 @ 5:16 pm
I can’t imagine how money that’s already been appropriated by Congress can not be spent. I can’t imagine anything other than 9-0 in front of the U.S. Supreme Court if it gets there.
Comment by Steve Tuesday, Jan 28, 25 @ 5:24 pm
“I can’t imagine anything other than 9-0 in front of the U.S. Supreme Court if it gets there.”
I suspect that your mind will be well and truly blown in the next few years.
And repeatedly.
– MrJM
Comment by @misterjayem Tuesday, Jan 28, 25 @ 5:50 pm
Rich, you are doing a remarkable job covering this.
Thank you.
Comment by Bridget Dougherty Tuesday, Jan 28, 25 @ 6:23 pm
===They are either lying to us or they are critically incompetent.===
They’re both?
Comment by Anyone Remember Tuesday, Jan 28, 25 @ 7:01 pm
The cruelty was always the point. Trump’s bargaining style has always been a scorched earth, elbow- throwing initial bid, hoping to intimidate and overwhelm the opponent with brazenness and bravado. Then he crumbles or falls back to a ropa-a-dope through the courts to wear down the opponent and drain their resources, until he can settle. “Lawfare” is something he’s always used but blames others for.
Comment by Give Us Barabbas Tuesday, Jan 28, 25 @ 7:18 pm
Thank you, Governor Pritzker, for speaking out and fighting for all of us in Illinois.
And thank you, Rich, for the coverage.
Comment by G'Kar Tuesday, Jan 28, 25 @ 7:59 pm
Seems like the smart thing to do. See what you have coming in and out.
Comment by Pete Mitchell Tuesday, Jan 28, 25 @ 8:06 pm
===See what you have coming in and out===
Um, you can do that without cutting people off. How is that even close to smart?
Also, it’s not like these non-profits are sitting on weeks’ worth of operating expenses.
Of all the dumb comments today, that was probably the dumbest. Congratulations.
Comment by Rich Miller Tuesday, Jan 28, 25 @ 8:11 pm
Rich - Are you suggesting there might be dumb comments here? Say it ain’t so, Joe.
Comment by West Side the Best Side Tuesday, Jan 28, 25 @ 9:46 pm
=== They are either lying to us or they are critically incompetent.===
I’m going with critically incompetent.
Comment by Three Dimensional Checkers Tuesday, Jan 28, 25 @ 10:18 pm
Well, back to doomscrolling CapFax. Flashback to the days of the Rauner step freeze.
Comment by Mack Remet Wednesday, Jan 29, 25 @ 9:58 am
No surprises here. They are meticulously following their “operating manuals” previously published by Project 2025, and America First. The widely held belief that “He really couldn’t do all of that stuff this quickly” was foolish, and maddening.
Comment by Walker Wednesday, Jan 29, 25 @ 10:57 am