Federal grants and loans frozen by White House

The Office of Management and Budget (OMB), the largest office within the Executive Office of the President of the United States, has frozen all federal grants and loans, potentially impacting trillions in government spending and halting public programs that affect millions of Americans, possibly including Meals on Wheels and Head Start programs.

A new OMB memo, obtained by CNN on Tuesday, Jan. 28, 2025, stated the freeze is not across the board and is instead targeted to executive orders that address immigration, foreign aid, climate and energy, DEI initiatives, gender identity and abortion.

Stephen Montoya, an attorney at Montoya, Lucero and Pastor P.A., joined “Arizona Horizon” to discuss the constitutional side of the executive orders.

“It really does, in my opinion, clearly violate the separation of powers. Just as importantly, it violates a congressional statute passed in 1974,” Montoya said.

He refers to a similar case where former president Richard Nixon attempted to reduce the budget of the clean water act while not having permission from Congress. Based on article one, section one of the Constitution, Congress holds the legislative power within the government.

“Article one, section six, the spending clause, Congress has the power to tax, it has the power to spend,” Montoya said.

President Donald Trump holds the high power to veto however he does not have the congressional powers stated above, according to Montoya. Therefore, orders are successfully passed under the approval of Congress.