NewsWhite House's $3 trillion spending freeze sparks legal clash among Democrats

White House's $3 trillion spending freeze sparks legal clash among Democrats

The White House has ordered a halt to federal spending, according to media reports. The decision affects grants and loans, among other things, and may involve spending in the trillions of dollars, which Democrats claim is illegal.

The White House has halted federal spending. We're talking about trillions of dollars.
The White House has halted federal spending. We're talking about trillions of dollars.
Images source: © East News | MANDEL NGAN
Sara Bounaoui

The Director of the Office of Management and Budget (OMB) at the White House, Matthew J. Vaeth, ordered the halt to federal spending. This potentially impacts transfers to provincial governments, federal social programs, support for small businesses, disaster relief, subsidies for farmers, and research grants. The amount in question is $3 (CAD 4.3) trillion.

The decision aims to review programs for alignment with the President's priorities, including eliminating projects related to equality and inclusivity.

Congress approved these investments and they are not optional

Democrats sharply criticized this move, questioning its legality. - Donald Trump must direct his Administration to reverse course immediately and the taxpayers’ money should be distributed to the people. Congress approved these investments and they are not optional; they are the law - declared the Democratic leader in the Senate, Chuck Schumer.

He added that this decision "will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities. These grants help people in red states and blue states, support families, help parents raise kids, and lead to stronger communities."

Experts cited by the "Washington Post" believe that the temporary halt on spending approved by Congress is likely legal but raises concerns about attempts by the White House to usurp Congress's main powers.

- I worry this is an effort to hold back on not implementing the law of the land as it relates to the budget process - said G. William Hoagland, vice president of the Bipartisan Policy Center.

The decision to halt aid previously caused confusion

Earlier decisions to halt U.S. foreign aid, which suspended support programs for Ukraine, military aid to Taiwan, and AIDS programs caused similar confusion.

Russell Vought, nominated by Trump as the new OMB director, is an advocate of the theory that the executive branch is not required to execute expenditures mandated by Congress.