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NewDEAL Opposes Executive Order Freezing Federal Grants and Loans; Action Hurts the American People, Stymies State and Local Leaders

News Category: Media, Statements and Press Releases

NewDEAL Opposes Executive Order Freezing Federal Grants and Loans; Action Hurts the American People, Stymies State and Local Leaders

For Immediate Release:

DATE: January 29, 2025

CONTACT: Jonathan Dworkin, The NewDEAL, jonathon@newdealleaders.org

Washington, D.C. – The NewDEAL strongly opposes the Trump Administration’s order to freeze federal grants and loans, thereby withholding key resources from American families, communities, and non-profits.

President Trump’s intended freeze stymies the work of state and local elected officials who work tirelessly and directly with community members to deliver services to people in need, expand access to childcare, create good-paying jobs, develop affordable housing units, and take on more big challenges to make life better for everyday Americans.

Such a move runs counter to Donald Trump’s campaign promises to build a strong economy and “end the weaponization of government against the American people.” Instead, this action stokes fear and division while threatening to cut funding for local police and fire departments, Head Start preschool programs, and initiatives that support homeless veterans, among other things.

With President Trump’s overreach of power temporarily blocked by federal court, we urge him to reverse course, and we remain committed to uplifting and advocating for state and local leaders in spite of attempts from the Trump Administration to weaken their good work.

Response from NewDEAL Leaders

Josh Becker, California State Senator, told press: “This freeze on federal grants is illegal, immoral, and dangerous. These funds support critical programs and jobs that people depend on every day. Halting them would put lives at risk, jeopardize major infrastructure projects, and hurt the economy by driving up unemployment.”
Adrian Boafo, Maryland State Delegate, posted on X: “To all the Marylanders in our state, I want you to know that if Donald Trump freezes federal assistance, @MDDems in the legislature will work around the clock to ensure that you are protected. We will not stay silent and do nothing while Trump takes away your benefits.”
Royce Duplessis, Louisiana State Senator, posted on X: “Federal aid is crucial for Louisiana families, particularly as New Orleans gears up to host the Super Bowl and Mardi Gras—both SEAR 1 events requiring significant resources for safety and security.”
Kate Farrar, Connecticut State Representative, posted on Instagram: “A judge has temporarily halted some of Trump’s illegal efforts to freeze federal funds to the states but this is not over. I stand strong as a part of the Connecticut firewall to protect our residents. #stayengaged #statelegislaturesmatter”
Bill Ferguson, Maryland Senate President, posted on X: “As new information becomes available from the Trump Administration's EOs, including a pause in federal grants here in Maryland, I remain engaged with my team and MD officials to share the latest information with Marylanders and our State House press corps.”
Aaron Ford, Nevada Attorney General, posted on Blusky: “Our Office is aware of the Trump Administration’s intent to halt federal assistance programs. Any pause to critical funding will harm Nevadans, weaken public safety and negatively affect programs like Medicaid and SNAP. We’re prepared to fight against this ill-conceived idea.”
Kate Gallego, Mayor of Phoenix, AZ, posted on X: “The @WhiteHouse attempt to block federal grants blatantly violates the law—and puts Phoenix's Police and Fire departments, our ability to combat homelessness, water conservation efforts, and much more at risk. I strongly urge the President to reverse course immediately.”
Sandra Jauregui, Nevada State Assemblymember, posted on X: “No WIC, no SNAP, no Universal School Lunch. Programs that Nevada families depend on to feed their children.”
Will Jawando, County Councilmember in Montgomery County, MD, posted on X: “Grateful for federal courts blocking the reckless grant/loan freeze that threatens vital programs. Working with @MontCoExec, @GovWesMoore & partners at all levels to protect Montgomery County residents & maintain stability.”
Cavalier Johnson, Mayor of Milwaukee, WI, told press: “"What's clear is that there's tens of millions of dollars — literally tens of millions of dollars — that are at stake here in Milwaukee.”
Tishaura Jones, Mayor of St. Louis, MO, posted on X: “Late last night, a memo went out from the Trump Administration ordering federal agencies to pause the disbursement of federal grants, loans, and other financial assistance to state, local, and tribal governments.”
Jazz Lewis, Maryland State Delegate, posted on X: “Trump's actions put at risk so many programs and organizations that everyday Americans depend on. Make no mistake, this pause will damage efforts to improve people's lives and tackle some of the most defining issues we face.”
Brooks Lierman, Maryland State Comptroller, said in a statement: “The decision by the Trump administration to attempt to freeze the disbursement of federal grants and loans is deeply concerning because of its potential impact on Maryland residents, communities, businesses, and non-profits, and because of the chaotic nature of the announcement.”
Bob Morgan, Illinois State Representative, posted on X: “Nearly 1/3 of Illinois residents - 3.3 million adults and children - get their healthcare through Medicaid. This move is as catastrophic as it is heartless.”
Tram Nguyen, Massachusetts State Representative, posted on X: “The Trump administration has made an outrageous decision: halting all federal grants & loans, including vital student loans and programs like WIC, which provides essential nutrition support to low-income families.”
Ron Nirenberg, Mayor of San Antonio, TX, posted on X: “If chaos and confusion were the goal – mission accomplished.”
Rebecca Perkins Kwoka, Democratic Leader of the New Hampshire Senate, posted on X: “Today, I was proud to stand with @AlexisSimpsonNH and call on @KellyAyotte to speak out against POTUS halting federal funding. This move put Granite Staters’ lives & livelihoods on the line and they deserve leaders who will stand up for them. #nhpolitics”
Dylan Roberts, Colorado State Senator, told press: “A lot of the grants that counties and towns receive to build housing or to provide rental assistance or to stabilize existing housing comes from the federal government, and it’s my understanding that this order has shut those dollars off. So you think we have an affordable housing crisis now? It could get a lot worse.”
Aaron Rouse, Virginia State Senator, posted on X: “Federal workers shouldn’t struggle to make ends meet because of a government shutdown. That’s why I’ve introduced legislation to create a 30-day delay of evictions and foreclosures for federal workers and contractors who don’t receive a paycheck during a shutdown. We need to protect those who keep our nation running.”
Sean Scanlon, Connecticut State Comptroller, posted on X: “As Comptroller it’s my job to track what we get from DC and how it’s spent. We spent 14.3 billion in federal funds in FY24. That money helps our kids, seniors, veterans, police and so many more. Make no mistake: any pause will hurt people and have disastrous consequences for CT.”
Zeb Smathers, Mayor of Canton, NC, posted on X: “Most days, I hate politics—and I’m in it. What I hate most is when children and good people, regardless of race, creed, or party, who are just trying to raise their families, get caught in the crosshairs of political games. This freeze is one of those moments. We can do better.”

Juliana Stratton, Lieutenant Governor of Illinois, posted on X: “The decision to halt federal funding, poorly disguised as an act of protecting your dollars, is cruel. Millions are scrambling because the White House decided to leave states, their supposed partners, in the dark. The chaos, fear and confusion that’s ensued—that's intentional.”
Randall Woodfin, Mayor of Birmingham, AL, posted on Bluesky: “POTUS’s funding pause risks stalling progress in cities like Birmingham, impacting public safety, neighborhood revitalization, workforce development, & healthcare. We urge the Administration to provide clear guidance and a timeline for restoring access to the funds our residents’ taxes pay for.”
Jeff Yarbro, Tennessee State Senator, posted on X: “The President, by incompetence, malice, or a combination of the two, undermined services millions of people rely on every day-Medicaid, meals on wheels, funding for cops, farmers, & lots more. The presidency isn’t a reality show. There are real-life consequences to the job.”