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President Trump's federal funding freeze hits Medicaid in Illinois, slated to disrupt vast array of programs
The Trump administration's federal freeze has shut Illinois out of Medicaid, according to Gov. JB Pritzker's office. The government-funded health insurance program covered about 3.9 million people in Illinois in 2023, including low-income adults, children, pregnant women and people with…
chicago.suntimes.com
President Donald Trump’s temporary freeze on federal funding to state and local governments shut Illinois out of Medicaid Tuesday, while seeding disruption and panic throughout governmental agencies across the Chicago area that rely on dollars from Washington.
Trump’s administration announced the pause in federal grants, loans and other financial assistance as they embarked on a sweeping review of spending — a measure aimed at “ending ‘wokeness’ and the weaponization of government,” according to a memo from Matthew Vaeth, acting director of the Office of Management and Budget.
The funding freeze could affect trillions of dollars and cause widespread disruption in health care research, education programs and other initiatives. Grants that have been awarded but not spent are also halted, according to the Associated Press.
Though the funding freeze was supposed to take effect at 4 p.m. Central Time Tuesday, Gov. JB Pritzker’s office said that the state of Illinois was shut out of Medicaid as of Tuesday morning. The government-funded health insurance program covered about 3.9 million people in Illinois in 2023, including low-income adults, children, pregnant women and people with disabilities.
State agencies have reported to the governor’s office issues with accessing federal funding sites and disbursement systems, including Medicaid systems, the governor’s office said. Pritzker has been in communication with the state’s federal delegation, local elected officials, nonprofits and other governors about the matter.
“The Governor has directed his senior team to assess the detrimental impacts of this unlawful action on the state’s budget and services,” governor’s office spokesman Matt Hill said.
In the explosive memo, Vaeth wrote: “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.”
Vaeth said each agency must complete a comprehensive analysis of all federal financial assistance programs. “In the interim, to the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders.”
Mayor Brandon Johnson said he was in contact with Illinois senators dikk Durbin and Tammy Duckworth to figure out exactly what a funding freeze would mean for the city.
“These are unprecedented attempts to attempt to defund childcare or to defund infrastructure projects. This is something that is well outside the purview of the executive office,” Johnson said at a City Hall news conference. “These appropriations have been mandated by the legislative branch. These are laws. And you know, we as a country of law, as a democracy, we prefer when we have leaders who actually are committed to upholding that law.”
Durbin called the freeze “unconstitutional” and “above all else, it’s inhumane.”
“Every American relies on federal funding—from public safety, disaster relief, medical research funding, and small business loans to Head Start and child care programs, veterans care, nutrition assistance, food inspections, and so much more,” Durbin said in a statement. “Denying critical funding for our families will not make America great.”
While Chicago-area officials grappled with what the federal funding freeze might mean, researchers at the University of Chicago were already being directed to rein in any work that relies on dollars from Washington.
In a faculty memo, UChicago Provost Katherine Baicker told faculty to not to “purchase new supplies or equipment, start new experiments, embark on funded travel, etc.”
“This is not a request that I make lightly. The research enterprise is at the core of our University’s mission and is of profound importance to the daily work of our faculty, researchers, staff, and students. I also know that this is insufficient guidance and that you must have many questions (as do I),” Baicker wrote.
“I wish that I had more information to share now, but will continue to be in touch as we learn more. But we must for now proceed under the assumption that grant expenditures incurred after today while this memorandum is in effect may not be covered by federal funding.”
On the Senate floor, Minority Leader Chuck Schumer, D-NY, called on Trump to “rescind this order at once.”
“People are worried. People are scrambling. People are in panic mode, trying to figure out how this order is going to affect them. Hospitals with people on life support, food pantries that feed the hungry, police departments that patrol our streets. Every one of them is worried,” Schumer said.
