How Trump’s federal spending freeze could impact Michigan

Attorney General Dana Nessel joins other AGs in filing legal action to preserve programs and services

By: Anna Liz Nichols - January 29, 2025

Just as a sudden federal funding freeze from the Trump administration was set to go into effect Tuesday evening, a federal judge temporarily blocked the move that would cut off funding to an array of programs and grants around the country.

But the pause is only until Monday. And Michigan agencies, elected officials and nonprofits are scrambling to understand what programs are on the chopping block as online systems for Medicaid and early education programs that utilize federal dollars have suffered outages across the country since the Trump administration issued the freeze on Monday.

The two-page memo from Matthew J. Vaeth, acting director of the Office of Management and Budget (OMB), outlines how evaluating programs and trimming down federal spending on unnecessary or redundant endeavors will improve government efficiency and help align spending to the values of President Donald Trump’s administration.

“Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, promoting efficiency in government, and Making America Healthy Again,” Vaeth said.

It was a decision sprung on the country suddenly that will have immediate and harsh consequences for those most vulnerable in Michigan, Michigan Nonprofit Association (MNA) President Kelley Kuhn said.

“Putting a pause on things can impact critical services like cancer research, housing and food assistance, Head Start preschool programs, shelters. I mean, the list goes on and on, as far as the implications that could be felt in communities as a result of this,” Kuhn said.

Read the full article