Trump Administration Spending Freeze Cripples Minnesota, Officials Say
On January 28, 2025, Minnesota Governor Tim Walz and Lieutenant Governor Peggy Flanagan sharply criticized President Donald Trump’s federal spending freeze, denouncing it as reckless and harmful to the state. The freeze, they claimed, jeopardizes $1.9 billion in monthly federal spending in Minnesota, totaling nearly $23 billion annually, according to an estimate from the Governor’s office.
Governor Walz, speaking at a St. Paul press conference, condemned the action in strong terms. “Donald Trump’s reckless action cut off funding to law enforcement, farmers, schools, childcare, veterans, and healthcare,” he stated. “While he was out golfing, he threw the country into crisis. This is not bold. It’s not leadership. It’s stupid, buffoonish, childish—that’s exactly what they did.”
Although a federal judge temporarily stayed the order following a lawsuit by several nonprofit groups, considerable uncertainty remains regarding the fate of numerous vital federal programs. These programs at risk include heating assistance for low-income families, Head Start preschool, Meals on Wheels for seniors, and numerous road and bridge projects. Medicaid, accounting for over half of the $1.9 billion estimate, was initially claimed to be unaffected by the Trump administration. However, Medicaid portals nationwide experienced outages on Tuesday, though Minnesota’s portal was restored later in the day, allowing the state to submit a $400 million reimbursement request.
Beyond Medicaid, other significantly impacted programs include the Supplemental Nutrition Assistance Program (SNAP), MinnesotaCare (the state’s health insurance program for the working poor), federal transportation funding, and Section 8 housing vouchers.
The vaguely worded executive order caused widespread confusion, forcing state governments and federal agencies to scramble to identify affected spending categories. While Medicare and Social Security, along with “assistance received directly by individuals,” were explicitly exempted, a subsequent memo from the Office of Management and Budget (OMB) appeared to narrow the scope, targeting programs related to diversity, equity, and inclusion (DEI) initiatives, the Green New Deal, and funding for NGOs deemed to undermine national interests. However, a separate OMB document ordered a review of hundreds of federal programs, including SNAP, the federal criminal background check system, crop insurance, farm subsidies, low-income heating assistance, and Justice Department grants to law enforcement.
Governor Walz expressed outrage, accusing the Trump administration of “amateur-hour cruelty” and highlighting the impact on law enforcement funding. Attorney General Keith Ellison announced that Minnesota is among 23 states suing to block the order.
The Impoundment Control Act of 1974 and Supreme Court precedent prohibit the executive branch from refusing to spend congressionally appropriated funds. Ignoring Congress’ budgetary authority would severely weaken the legislative branch. Concerns were voiced by several Minnesota representatives, including U.S. Rep. Angie Craig (reporting police department funding delays), U.S. Sen. Tina Smith (community health centers facing layoffs), and U.S. Sen. Amy Klobuchar (a domestic violence prevention group unable to access funds). In contrast, Republican Rep. Pete Stauber offered assurances that the pause would be temporary and would not significantly impact important projects.
*By Michelle Griffith and Christopher Ingraham, Minnesota Reformer, January 28, 2025*