On January 21, 2025, U.S. President Donald Trump spoke about AI infrastructure at the White House. Later, his administration announced a complete stop to federal grants and loans. This decision appears to override Congress’s constitutional power to manage public spending.
According to Politico’s Playbook, the order stops funding for research groups, charities, universities, and community projects, totaling around $3 trillion. The report suggests this move might be illegal. Senator Chuck Schumer (D-NY) stated, “Congress approved these investments, and they are not optional; they are the law.”
Playbook also notes that Trump might be setting up a legal challenge to laws created after the Watergate scandal, which prevent presidents from withholding funds approved by Congress.
Regardless of legal concerns, Playbook warns that Trump is taking a significant political risk. His supporters are happy about the spending cuts, but soon, the full impact of blocked funds for various programs and projects across the country will become clear. The order will affect communities nationwide, not just liberal or progressive projects in coastal areas.
The report concludes with a warning: “Be careful what you wish for, Mr. President.”
