Rep. Grace Meng, Chair of the Congressional Asian Pacific American Caucus (CAPAC), has strongly condemned the Trump administration’s decision to freeze the disbursement of federal financial assistance, calling the move "appalling" and a direct threat to Americans struggling to make ends meet.
"President Trump’s attempt to suspend federal financial assistance is appalling," Meng stated. "At a time when many Americans are struggling to make ends meet, the Trump Administration is raising costs and undermining vital programs that all Americans, including Asian Americans, Native Hawaiians, and Pacific Islanders (AANHPI), depend on."
The decision, announced by the White House on Jan. 28, puts a sweeping hold on all federal grants and loans, affecting education, health care, poverty programs, housing assistance, and disaster relief—initiatives that rely on trillions of dollars in federal funding.
Meng highlighted the immediate impact on programs that provide nutrition support for pregnant mothers and newborns, economic development for small businesses, funding for safe drinking water, and salaries for teachers and first responders.
"This decision also jeopardizes funding for millions in the AANHPI community, including funding for healthcare access, public safety programs to combat anti-Asian hate crimes, and housing," Meng emphasized. "Let me be clear: federal financial assistance is not a diversity initiative, and hardworking Americans deserve a functioning government and access to the programs that they have paid for with their taxes."
The Trump administration's move follows last week’s suspension of foreign aid, which has already begun cutting off the supply of lifesaving medicines to nations reliant on US development assistance.
The Office of Management and Budget, in a memo, justified the freeze on federal aid by stating it would allow the administration to align grants and loans with Trump's priorities, including executive orders aimed at ending diversity, equity, and inclusion efforts.
Meng urged the administration to reverse its decision immediately. "President Trump must reverse course and release the federal financial assistance that has already been appropriated by Congress and enacted into law," she said. "Millions of hardworking Americans are counting on it."
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