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South Florida braces for Trump's funding freeze on financial assistance, grants

A man stands by a doorway
Mark Schiefelbein/AP
/
AP
President Donald Trump speaks to reporters aboard Air Force One en route from Miami to Joint Base Andrews, Md., Monday, Jan. 27, 2025. (AP Photo/Mark Schiefelbein)

President Donald Trump's administration has ordered a temporary pause on all federal financial assistance and grants, leaving South Florida political leaders concerned that local social programs will go without funding.

"Whether that funding is going to our farmers, our transit system, our students, our community health centers, or our non-profits, it’s all on hold. The impact on Miami-Dade and Broward County will be devastating," said Democratic Congresswoman Frederica Wilson in a statement.

Matthew J. Vaeth, acting director of the White House Office of Management and Budget, issued a memo this week ordering the pause to give federal agencies time to do a comprehensive analysis of all financial assistance programs to ensure they align with the president's policies, and not with so-called "wokeness."

"Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance ... including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal," Vaeth wrote.

READ MORE: Trump memo to halt federal funds triggers confusion and constitutional questions

The administration noted that the pause will not affect Medicare or Social Security benefits. It will take effect at 5 p.m. on Tuesday.

Late Wednesday, however, a federal judge temporarily blocked the Trump administration's move. The judge's order capped the most chaotic day for the U.S. government since Trump returned to office, with uncertainty over a crucial financial lifeline causing panic and confusion among states, schools and organizations that rely on trillions of dollars from Washington.

U.S. District Judge Loren L. AliKhan blocked the funding freeze only minutes before it was scheduled to take effect. The administrative stay, prompted by a lawsuit brought by nonprofit groups that receive federal money, lasts until next Monday afternoon. Another court hearing is scheduled that morning to consider the issue.

The broad language of the memo made it unclear as to what specific programs will be affected by the pause.

Congresswoman Wilson said she and other Democrats will seek to clarify the order and determine the exact implications of the pause and provide more details.

Local governments in South Florida receive millions of federal dollars for various programs including transportation, scholarships, housing assistance, and community revitalization.

The funding freeze could affect trillions of dollars, at least temporarily, and cause widespread disruption in health care research, education programs and other initiatives. Even grants that have been awarded but not spent are supposed to be halted. State agencies and early education centers appeared to be struggling to access money from Medicaid and Head Start.

The Associated Press contributed to this story.

Joshua Ceballos is WLRN's Local Government Accountability Reporter and a member of the investigations team. Reach Joshua Ceballos at jceballos@wlrnnews.org
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