Federal funding for California wildfire relief could face roadblocks or delays after President Donald Trump ordered all federal agencies to stop issuing grants and loans beginning Tuesday evening, according to an internal memorandum sent Monday.
A judge blocked the freeze minutes before it was set to go into effect Tuesday, temporarily delaying it at least until next Monday.
Newsweek reached out to the White House by email for comment.
Why It Matters
The new order may affect billions of dollars in funding allocated to state and local governments. The federal government funds thousands of programs, including research projects, housing subsidies and educational grants.
It comes amid an ongoing federal disaster declaration in California as numerous wildfires this month have killed at least 29 people in the Los Angeles area and destroyed thousands of homes.
The administration emphasized that the freeze was temporary and was being put in place for the Trump administration to review federal spending to ensure it follows Trump's executive orders. The president has signed a slew of orders since he took office on January 20.
What To Know
The memo was authored by Matthew Vaeth, acting director of the Office of Management and Budget (OMB), and specifically called out the "use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies" as being a "waste of taxpayer dollars."
It was not immediately clear who would be affected by the freeze, although there is an exception for funding and grants paid directly to American citizens.
The memo says the OMB can grant exceptions on a "case-by-case basis."
Concerns arose that the freeze could affect California wildfire relief, particularly that from federal agencies such as the Federal Emergency Management Agency. Trump has often criticized FEMA and has hinted at overhauling the agency.
Last week, in an exclusive interview with Fox News' Sean Hannity, Trump said he would prefer if "the states take care of their own problems."
During a visit to California this past Friday, Trump said that California is "going to need a lot of federal help."
But it's still unclear how that help will be affected by the Trump administration's funding freeze. Jeff Stein, a White House economics reporter for The Washington Post, said on X (formerly Twitter) that he believes a "huge range of services" will be affected, including state disaster aid.
What People Are Saying
Izzy Gardon, director of communications for California Governor Gavin Newsom, told Newsweek: "This memo violates federal law. We are confident funding will be restored."
Gardon did not elaborate on if—or how—wildfire relief funding would be affected by the freeze.
New York City Comptroller Brad Lander said in a statement: "President Trump's illegal order to freeze hundreds of billions of dollars that Americans rely on risks throwing cities, states, and families across the country into chaos.... The freeze could deny FEMA emergency payments to Los Angeles and eliminate funding for cancer research. It's unconstitutional, and risks shattering the foundation of trust that American government is built on—that the federal government will keep the financial promises it makes."
Matthew Vaeth said in the OMB's internal memo: "This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President's priorities."
The memo continued: "To implement these orders, each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that maybe implicated by any of the President's executive orders."
What Happens Next
Before the judge blocked it, the freeze was to go into effect at 5 p.m. Eastern time on Tuesday. If it becomes active next week, it is unclear how long it will remain in place.
English (US) ·