January 28, 2025 15:54 GMT
US: Democrats Vow To Fight Trump's Federal Spending Freeze
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Senate Minority Leader Chuck Schumer (D-NY) has pledged to fight a federal spending freeze requested by the White House Office of Management and Budget that is set to go into effect at 17:00 ET 22:00 GMT today.
- Acting OMB director, Mattew Vaeth, issued a memo yesterday ordering federal agencies to “temporarily pause all activities related to obligations or disbursement of all Federal financial assistance,” while they carry out a review of federal spending by February 10.
- The order could impact trillions of dollars of federal financial assistance, halt foreign aid, and freeze implementation of Biden-era legislation like the Inflation Reduction Act and the bipartisan infrastructure bill.
- Schumer said: "Head of state attorneys general association are going to court right away on the order... Trump does not have authority to ignore law, will fight order."
- The directive raises constitutional questions about the OMB's role in blocking Congressionally authorised spending, an issue raised by Democrats during the nomination hearing for Trump's OMB director Russell Vought, and signals Trump's willingness to stretch executive authority to the limit in searching for cuts to federal spending.
- Senator Patty Murray (D-WA), the top Democrat appropriator in the Senate, said in a joint statement with her House counterpart: "The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country.”
- Murray added that she will ask the Senate Budget Committee to put Vought's nomination on hold in light of the order.
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