Democrats to strategise response to Trump's grant halt

House Democratic Caucus to gather as President Donald Trump's administration orders pausing of federal grants and loans that could impact trillions in government spending and halt public programmes, affecting millions of Americans.

U.S. President Donald Trump gestures during a House Republican members conference meeting in Trump National Doral resort, in Miami, Florida, U.S. January 27, 2025. REUTERS/Elizabeth Frantz / Photo: Reuters
Reuters

U.S. President Donald Trump gestures during a House Republican members conference meeting in Trump National Doral resort, in Miami, Florida, U.S. January 27, 2025. REUTERS/Elizabeth Frantz / Photo: Reuters

US House minority leader has said he will convene an emergency meeting on Wednesday to discuss President Donald Trump's decision to freeze federal spending.

"I write with respect to the illegal Trump administration order purporting to freeze federal taxpayer funds that have been lawfully appropriated by Congress," Hakeem Jeffries said in a letter on Tuesday.

"The Republican Rip Off will raise the cost of living for the working class, while hurting children, seniors, veterans, first responders, houses of worship and everyday Americans in need," the New York lawmaker wrote.

Jeffries said the House Democratic Caucus will discuss a comprehensive three-pronged counteroffensive anchored in an appropriations strategy, a litigation strategy, and a communications strategy.

The move came a day after a memo from the White House budget office called for a spending freeze on federal assistance by 5 pm on Tuesday, which could affect everything from aid to non-profits, universities, small business loans and state and local government grants.

Earlier, Senate Minority Leader Chuck Schumer slammed Trump over his decision, saying it is "lawless, dangerous, destructive, cruel. It's illegal. It's unconstitutional."

The pause on US federal assistance would be "a dagger at the heart of the average American family," Schumer said, adding that "the President does not have the authority to ignore the law, and we're going to fight this in every way that we can."

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'Every penny is being accounted for honestly'

It comes as the White House on Tuesday defended the Trump administration's decision to freeze all loans and grants disbursed by the federal government, a move which has caused confusion about the fate of trillions of dollars in funding.

"This is a very responsible measure," White House press secretary Karoline Leavitt told reporters in Washington, adding: "It's incumbent upon this administration to make sure, again, that every penny is being accounted for honestly."

Meals on Wheels, a member organisation for thousands of local affiliates that deliver food to seniors in their homes, said the confusion over the federal aid pause puts its programmes at risk

"The lack of clarity and uncertainty right now is creating chaos for local Meals on Wheels providers not knowing whether they're going to be reimbursed for meals served today, tomorrow, who knows how long this could go on," spokeswoman Jenny Young wrote in an email.

"Which unfortunately means seniors may panic not knowing where their next meals will come from."

The main funding for Meals on Wheels, which feeds more than 2 million seniors annually, and other senior nutrition programmes is a grant distributed by the federal Administration on Aging to state governments that then send the money to individual providers.

"We need clarity now," Young added.

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