Impact of Announced Pause in Federal Funding Draws Immediate Concern, Criticism

In Washington and in Connecticut, voices have been raised in reaction to actions announced by the new federal administration that appear to have required a pause in a vast array of federal funding provided to programs delivered by states and nonprofit organizations.  The reactions, even amidst federal agency uncertainty as to the extent of the impact to be imposed, were swift an unequivocal.

“The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country,” the Democratic leaders of the House and the Senate appropriations committees” said Rep. Rosa DeLauro, D-Conn., and Sen. Patty Murray, D-Wash in a letter to the acting leader of the federal Office of Management and Budget.

“As leaders of the House and Senate Committees on Appropriations, we write with extreme alarm about the Administration’s efforts to undermine Congress’s power of the purse, threaten our national security, and deny resources for states, localities, American families, and businesses.”

“The President has issued a number of Executive Orders to unilaterally freeze or contravene critical funding provided in bipartisan laws, sowing chaos across states, families, and communities. In that vein, you have now issued a series of Office of Management and Budget (OMB) memoranda that only further disarray and inefficiency—in particular, M-25-13, pursuant to which agencies will be ordered to stop vast swaths of federal financial assistance to states, families, and communities …”

“The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country.  We write today to urge you in the strongest possible terms to uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law.”

“While we may have strong policy disagreements, we should all be united in upholding our nation’s laws and the Constitution.  We will be relentless in our work with members on both sides of the aisle and in both chambers to protect Congress’s power of the purse. The law is the law—and we demand you in your role as Acting OMB Director reverse course to ensure requirements enacted into law are faithfully met and the nation’s spending laws are implemented as intended.”

Connecticut State Comptroller Sean Scanlon said “President Trump’s reckless decision to abruptly freeze federal grants and loans will have immediate and disastrous consequences for Connecticut. As Comptroller, it’s my job to track what we get from Washington D.C. and how we spend it. In fiscal year 2024, more than $14.3 billion passed from the federal government through our state agencies directly to Connecticut residents, nonprofits, schools, and much, much more. While the exact list of impacted programs remains unclear, what is clear is this: any pause, however brief, of any federal funding will hurt people in Connecticut.”

Attorney General William Tong joined a coalition of 22 attorneys general suing to stop the implementation of the new policy. “This is a full assault on Connecticut families-- an unprecedented and blatantly lawless attack on every corner and level of our government and economy. Connecticut is locked arm in arm with states across the nation seeking an immediate restraining order to protect critical services that each and every one of us rely on every day,” Tong said.

Gian-Carl Casa, president of CT Community Nonprofit Alliance, said “Taking away federal funding will cut a hole in the already-frayed safety net, through which tens of thousands of people who depend on nonprofit programs here will fall. To implement this kind of order without regard for the impact on living, breathing people is beyond comprehension.”

Emily Byrne, Executive Director of Connecticut Voices for Children issued a lengthy statement of concern, aimed at leaders in Washington and Connecticut:

“This executive order is not just reckless—it’s harmful and already creating unnecessary chaos and hardship for families and communities across the country and our state. The decision raises serious legal and ethical questions about the federal government’s ability to suspend funding that millions of Americans rely on for their well-being and we’re deeply worried this is a pre-emptive move to divert funds toward tax cuts for billionaires and the uber-wealthy.

“While we hope the Trump administration will reconsider, and our legislative allies will push back against this reckless and legally questionable decision, Connecticut is being directly impacted and our state must act swiftly to shield vital programs from its ripple effects. Health care, housing, child care, education — these are not areas where we can afford to see disruption.

“Fortunately, Connecticut is in the best position it can possibly be in to respond to this crisis—but it does require decisive action.

“With our full budget reserve fund and a significant budget surplus, we have the resources to protect our residents from deep cuts and CT Voices has already developed a comprehensive blueprint for making responsible adjustments to the fiscal controls so our state can access the funds it needs to fill in additional gaps as well as make appropriate expansions to the policies and programs we know eradicate poverty and advance family economic security.

“At a minimum, we should begin utilizing our rainy day fund. If this isn’t the kind of storm it was built for, then what is?

“Diversity and equity aren’t just principles—they are essential to building a fair and thriving society. Connecticut already faces some of the widest income and wealth gaps in the nation, a direct result of an economy that fails to work for everyone. This executive order risks deepening those disparities, putting already vulnerable communities even further behind.

“We must stand firm in our commitment to equity and inclusion, especially now, when these values are under direct threat.  We urge state leaders to take immediate action to prevent this order from upending the lives and livelihoods of hardworking families in Connecticut."

A federal judge late Tuesday blocked the pause from taking effect as planned at 5 PM, but for how long is uncertain.