Massachusetts Governor Healey: Trump Administration pause on federal funds is “really bad”; Mass AG weighing litigation

Chris Lisinski

[Coverage Developing] State and federal policymakers are scrambling to unpack the significance of a freeze on most federal grants and loans that the Trump administration ordered Monday, and Gov. Maura Healey’s initial interpretation of the move is that it’s “really bad.”

The interim head of the federal Office of Management and Budget wrote to the heads of federal executive departments and agencies instructing them to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance” while undertaking a review of their funding distributions designed to align spending with President Donald Trump’s priorities.

The pause will take effect at 5 p.m. Tuesday, according to OMB, and could carry major implications for Massachusetts. According to state documents, federal aid is always a big source of budget revenue and Massachusetts expects to receive more than $15 billion in federal reimbursements in fiscal year 2025.

“This is really bad,” Gov. Maura Healey told reporters Tuesday morning at an event in Burlington. 

It was not immediately clear how much money headed to Massachusetts might be affected, or how long the review and “temporary pause” might last.  Agencies must submit detailed information to OMB by Feb. 10.

While federal aid is governed in part by Congressional appropriations and longstanding funding formulas, OMB Acting Director Matthew Vaeth said the administration wants to ensure trillions of dollars the federal government spends in grants and loans match Trump’s goals.

“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 wrote in the memo, a copy of which was published by The New York Times. “The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”

Officials and budget experts in Massachusetts, where Democrats currently hold all congressional seats and every constitutional office, have been concerned about the potential loss of federal funds under Trump.

“The order that came out from President Trump last night will have the effect of cutting off federal funding to our states, and that’s federal funding that’s going to help seniors heat their homes, that’s going to help people pay for child care and important programs that parents and families need,” Healey said. “It’s going to cut off funding for food, for health care, transportation, important infrastructure projects in our state.”

Attorney General Andrea Campbell called the move “a reckless abuse of power” and said her office is weighing litigation.

“This will hurt families. We’re exploring prompt action to stop it,” she posted on X.

[Sam Doran contributed reporting.]