A White House Memo ordering a broad freeze Till 5 pm on Tuesday evening, federal grants and loans are normal Americans that depend on such aid, as well as experienced budget experts scratched their heads.
The memorandum suspended for federal funding was unclear in its word, causing confusion within the federal aid programs, received government assistance in non -profit institutions and among Americans. Adding to whiplash, a federal judge on Tuesday Temporarily blocked the freeze As she considers arguments from the plaintiff in the US government and the case.
“If it was being done according to executive orders [diversity, equity and inclusion]Why would the administration release such broad, unclear and misleading directions?
“I really don't understand it, and I think even those who are in power positions do not really understand it,” said Wendy Edelberg, director of the Hamilton Project in Brookings, said, a liberal-shout Public Policy Research Group.
Which programs are not affected by funding freeze?
The memorandum from the US Office of Management and Budget (OMB) indicated that social security and medicine programs would be exempted from suspension in federal funding. The additional guidance issued on Tuesday further specified that “any program that provides direct benefits to Americans is clearly excluded from stagnation.”
The update guidance stated, “In addition to social security and medicare, already clearly excluded under guidance, compulsory programs such as Medicid and SNAP will continue without stopping.”
The memorandum states that money is also discounted for small businesses, farmers, pail grants, head starts, rent assistance and other similar programs.
But even though this order is being sewn more narrowly, it can be a serious financial implication for millions of Americans who receive federal assistance, the experts said.
“If it is resolved quickly, the overall economic impacts for the first quarter will be modest, but it will be fully meaning to the people on the other side of these expected payments,” Edelberg said. “This may be a difference between having a job and no, evicting or eating – and economic numbers do not completely indicate how individuals are going to feel it.”
What is known here that who can be affected by the proposed stagnation in federal funding.
Will I still get Snap benefits?
According to the management and budget memorandum on Tuesday, the freeze does not apply to all federal financial assistance. The agency indicates that the supplementary nutrition aid program (SNAP) benefits, known as better food tickets, are excluded, specifying that “… any program that provides direct benefits to Americans Is, clearly excluded from stagnation and exempted from this review process. “
The Memo states, “Apart from social security and medicare, already clearly excluded under guidance, compulsory programs such as Medicid and SNAP will continue without stopping.”
SNAP serves around 41 million Americans.
Nevertheless when the program exempt from freeze, “You are still going to be really worried about whether the federal government is going to do well on those promises,” Edelberg said. “And that kind of uncertainty is not good for the economy.”
Is food affected for seniors?
Old Americans can be affected by a federal program, a federal program that can be affected through grants, on community-based senior nutrition programs such as food on food.
If the order involves the Old American Acts, it will “prevent service for millions of weak seniors who have no other means of buying or preparing food,” food on the wheels CBS Manivatch said in a statement Is. “Lack of clarity is causing chaos for food on the providers of wheels, not knowing whether they should serve food today,” said this.
Risk to Housing Assistance
The OMB memorandum said that fare aid and other similar programs will not be stopped. Nevertheless, National Low Income Housing Alliance (NLIHC) released one statement On Tuesday, saying that it believes that the Housing and Urban Development Department (HUD) programs can be covered by freeze.
NLIHC Interim Chairman and CEO Renny Willis said, “A small break in funding can also cause significant damage to low -income families and their communities.” “Freeze continues till now, low-income houses receiving federal fare assistance are equally at risk, which can face eviction, and in the worst cases, the homeless and farmer shelters close their doors to close their doors Can be forced, and non-profit organizations may have to be closed. “
Head Start Panic
Memo also indicated that the head start, a preschool schedule that serves children with about 800,000 low income, who receive the federal health fund, is not affected by funding stagnation.
But the National Head Start Association (NHSA) stated that OMB Memo has already “created nervousness among the head start grant recipients who are currently not able to attract any funds.”
“While we understand that this is a developed story, it will slow down the ability of the disruption, best, head start agencies.” NHSA Executive Director Yasmina Vinci said in a statement. “The worst, this means that hundreds of thousands of families will not depend on important services and the possibility will not work.”
Medicaid
Despite the update guidance released on Tuesday, stating that programs including Medicade have been excluded on Tuesday, state Medicade programs. Said they were closed The Health and Human Services System Department is used to track and separate your money.
Payment Management Services Web Portal displayed reading a message: “Due to executive orders about potentially uncontrolled grant payments, PMS is taking additional measures to process payment. Payment as a result of applicable programs and payment reviews There will be delay and/or payment rejection. “
According to a spokesperson, the National Association of Medicade Directors are demanding more clarity from the White House.
Will this student affect the loan?
According to the Education Department, Federal Funding Freeze does not apply to student loans and pale grants.
Funding stagnation “applies only to discretionary grants in the Education Department,” DOE spokesperson Maddy Biderman said in a statement to CBS Manivatch.
Nevertheless, family and students are concerned that funds from the programs that they depend, will evaporate under President Trump.
The Director of Policy at the Student Borrower Protection Center, “, the Director of the Policy Boror Protection Center,”, said, “The board is incredibly harmful to the families of any kind of freeze for federal financial assistance across the board, just just Trying to pay for college. ” CBS Manivatch. He said that uncertainty about the order is in a state of chaos and confusion. “Many questions remain about what the freeze applies and which programs it does not do.”
He said that many students rely on a variety of assistance to cover the costs beyond borrowers tuition.
“There are other types of federal work-study grants that go directly to colleges and universities, and supplementary education opportunities that go to some of the lowest income students. People actually rely on federal financial assistance, and you see May be out of college to leave families out of college or find out how they will cover this difference, “he said.
Contributed to this report.