Gov. Tim Walz and Lt. Gov Peggy Flanagan criticized President Donald Trump’s freeze on federal spending during a press conference at a YMCA in St. Paul on Jan. 28, 2025. Photo by Michelle Griffith/Minnesota Reformer.
A Trump administration spending freeze directly imperils $1.9 billion in monthly federal spending in Minnesota, nearly $23 billion annually, according to an estimate from Gov. Tim Walz’s office.
“Donald Trump’s reckless action cut off funding to law enforcement, farmers, school, child care, veterans and health care. While he was out golfing, he threw the country into crisis,” Walz said during a press conference at a YMCA in St. Paul. “This is not bold. It’s not leadership. It’s stupid, buffoonish, childish is exactly what they did.”
The order has already been temporarily stayed by a federal judge in response to a lawsuit brought by several nonprofit groups. But the uncertainty over the federal programs and their funding remains.
Among the programs in jeopardy: heating assistance for low-income families, Head Start preschool, Meals on Wheels programs for senior citizens and countless road and bridge projects.
Medicaid spending accounts for more than half of the $1.9 billion estimate. The Trump administration said that those payments would not be affected, though Medicaid portals in all 50 states did go down on Tuesday. Minnesota’s portal was back up on Tuesday afternoon, and Minnesota Management and Budget Commissioner Erin Campbell said the state successfully submitted a request for over $400 million in Medicaid reimbursements that they were not able to submit earlier in the day.
After Medicaid, the largest federal programs impacted in the $1.9 billion estimate include the food assistance program known as SNAP; MinnesotaCare, which is the state’s health insurance program for the working poor; federal transportation funding; and Section 8 housing vouchers.
The spending freeze was mandated in a vaguely-worded executive order, causing widespread confusion Tuesday as state governments and federal agencies scrambled to determine which spending categories might be affected.
The executive order explicitly exempted Medicare and Social Security from the freeze, as well as “assistance received directly by individuals.” A follow-up memo from the Office of Management and Budget appeared to narrow the order in scope, saying it is “expressly limited to programs, projects, and activities implicated by the President’s Executive Orders, such as ending DEI, the green new deal, and funding nongovernmental organizations that undermine the national interest.”
But a separate document issued to federal agencies by the OMB ordered the review of hundreds of federal programs, including SNAP; the federal criminal background check system; crop insurance and farm subsidies; the low-income heating assistance program; Justice Department grants to law enforcement agencies, and more.
Walz was visibly angry Tuesday and criticized the Trump administration for “amateur-hour cruelty.”
“They defunded the police, and they said it was okay with them,” Walz said. “This isn’t even banana republic territory. This is beyond that, what they’ve done.”
The OMB document did not specify whether every program on the list would be subject to the spending freeze, or just to the review for compliance with previous executive orders.
“The memo’s vague and contradictory language — whether intentional or not — makes it hard for the public to understand its impact,” said Sharon Parrott of the Center on Budget and Policy Priorities, a left-leaning think tank. “And this destructive chaos has nothing to do with making government work better for everyday people.”
At a Tuesday press conference, Attorney General Keith Ellison said Minnesota is one of 23 states suing the administration to block the order.
A 1974 law known as Impoundment Control Act and U.S. Supreme Court precedent preclude the executive branch from refusing to spend money appropriated by Congress, which has the constitutional power of the purse. If the executive branch were allowed to ignore Congress’ budget laws, the legislative branch would be severely weakened.
U.S. Rep. Angie Craig of Minnesota’s 2nd District said her office has received word from two Minnesota cities that Justice Department assistance to their police departments had been put on hold.
“I’ve heard from community health centers in Minnesota who are already looking at layoffs by the end of the day,” said U.S. Sen. Tina Smith. “May not be able to make payroll at the end of the week.” Sen. Amy Klobuchar said her office was in contact with a domestic violence prevention group that was unable to access funds.
Republican Rep. Pete Stauber attempted to reassure constituents that the pause wouldn’t significantly impact the projects they care about: “Rest assured, this pause on federal funding will be lifted on worthy projects, many of which I fought for in the Northland. This is good governance and what the American people voted for!”