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特朗普政府暂停联邦资金拨款,波及或超万亿美元,基建与住房项目受威胁

The Trump administration has suspended federal funding allocations, affecting or exceeding one trillion dollars, putting Infrastructure and housing projects at risk.

wallstreetcn ·  Jan 29 00:22

The acting budget director of the Trump administration issued a memorandum instructing relevant institutions to suspend federal financial assistance so that the government can review whether these expenditures comply with a series of recent executive orders. The vice chairman of the Senate Appropriations Committee and others stated that the orders are shocking, unprecedented, and will have devastating consequences.

The acting budget director of the Trump administration released a memorandum instructing all relevant Institutions to temporarily halt federal financial assistance for the government to review whether these expenditures comply with a recent series of executive orders.

Media analysis indicates that this is an unprecedented move that could trigger a chain reaction across the USA, as states, cities, and school districts heavily rely on federal funds.

The federal funding suspension order from President Trump threatens over 1 trillion dollars in Capital Trend to states, municipalities, and other local governments, putting transport Infrastructure and housing projects at risk.

The memorandum submitted on Monday night caused panic among various levels of government and Congress in the USA. The directive requires all Institutions to 'suspend all activities related to commitments or payments of federal financial assistance,' but does not affect Social Security and Medicare benefits. The suspension took effect at 5 PM Eastern Time on Tuesday.

The Trump administration was subsequently forced to clarify that the directive does not apply to all federal expenditures, mainly relating to the termination of diversified projects and funding associated with the Green New Deal. The White House press secretary also stated that this suspension would not affect individual assistance, such as food stamps or social welfare.

Nevertheless, the above suspension of federal funding allocations has been sharply criticized by Democrats in the USA. Ohio Democratic representative Allison Russo stated:

It's acceptable to review expenditures, but a comprehensive suspension of funds is extremely irresponsible and will have tangible effects on people. It is estimated that nearly 30% of Ohio's operating budget comes from Washington's grants.

Patty Murray, the vice chair of the Senate Appropriations Committee, and Rosa DeLauro, a senior member of the House Appropriations Committee, stated that this order is shocking, unprecedented, and will have devastating consequences. These two Democratic officials indicated that this has caused chaos across the USA.

According to a report from the Peter G. Peterson Fund, the total federal government grants to states and local governments in the USA amount to $1.1 trillion, accounting for 18% of total federal spending. Over the past 40 years, such grants have averaged 17% of total revenue for states and local governments.

The impact of the aforementioned suspension order is extensive. From New York to San Francisco, budgets across the USA are affected. Due to varying financial structures, some Institutions are more impacted:

  • New York City is expected to receive $9.6 billion in federal grants in the 2025 fiscal year (ending July 1), accounting for about 8.3% of its budget. However, as of the end of November last year, New York City had only received 13.5% of its annual federal grants, highlighting the uncertainty facing its finances. The budget of the New York City Administration for Children's Services, responsible for child welfare programs, relies 50% on federal funds, and a quarter of the budget for the New York City Emergency Management Department comes from federal grants.

  • In San Francisco, federal funds account for about 11% of the city's $15.9 billion budget.

  • In Texas, the health and transportation departments are key recipients of federal funding.

Governors, mayors, and other government officials across the USA are urgently assessing the impact of the aforementioned order and trying to determine when the funding will be cut off. Many officials responding to media inquiries indicated that they are still reviewing the directive, but it remains unclear which projects or how much funding will be affected.

It should be noted that this is not the first time Trump has operated federal funds in this manner:

  • In 2017, after Trump took office for the first time, he proposed a budget plan to cut 0.19 billion dollars in funding for the New York Police Department for counter-terrorism and homeland security, but the USA Congress basically did not approve these cuts.

  • In 2020, he threatened to cut federal assistance to 'anarchist jurisdictions' (referring to Democratic-controlled cities like New York that were protesting due to the Floyd incident at that time).

  • During Trump's first term, he also attempted to cut federal funding to 'sanctuary cities' (cities that do not cooperate with federal immigration enforcement), but several courts blocked Trump's administration from doing so at that time, although the USA Department of Justice successfully limited the scope of these court rulings to a certain extent.

Trump's latest suspension order is expected to face legal challenges:

Institutions such as the National Council of Nonprofits and the American Public Health Association filed a lawsuit on Tuesday, requesting the court to block the funding freeze until the court can assess whether the actions of the so-called Office of Management and Budget (OMB) are illegal.

New York State Attorney General Letitia James stated on the X platform that her office is about to take legal action.

Editor/danial

The translation is provided by third-party software.


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