Trump’s funding freeze sends shock waves across energy, environmental agencies

By Kevin Bogardus, Brian Dabbs, Heather Richards | 01/28/2025 01:55 PM EST

Besides halting a wide range of federal payments, the order could trigger a constitutional crisis, a barrage of lawsuits and an epic clash with lawmakers.

President Donald Trump speaks to reporters aboard Air Force One.

President Donald Trump speaks to reporters aboard Air Force One en route from Miami to Joint Base Andrews, Maryland, on Monday. Mark Schiefelbein/AP

President Donald Trump and Congress are barreling toward an epic clash over a federal funding freeze that could hinder billions of dollars for energy and environmental agencies, among others.

The Office of Management and Budget sent a memo Monday to agencies calling on them to halt federal grants and loans for the time being. The order is comprehensive, stopping a range of payments for clean drinking water, scientific research and tribal governments, as well as other efforts, as the new administration gets its spending priorities aligned.

The memo is meant to apply specifically to programs that could run counter to Trump’s executive orders, several of which target climate and diversity efforts. Nevertheless, its vague language has resulted in confusion with sweeping implications in the near term.

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The order looks likely to trigger a constitutional crisis as Trump and Russell Vought, his OMB director nominee, claim there is expansive presidential power to withhold spending.

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